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  3. d. obtain a beta estimate for your company. what d

d. Obtain a beta estimate for your company. What does it mean? Examine and compare the...

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Finance

d. Obtain a beta estimate for your company. What does it mean?Examine and compare the annual total returns and average return ofyour stock with that of the S&P500’s returns. Did it follow theBeta estimate? It would be helpful to illustrate the returns of thecompany’s stock and the market. in general how would we comparebeta and returns? what would we say if returns higher or lower thanthe s&p 500?

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Beta Beta is used for assessment of Risk associated with company or its stock In other words Beta is ratio of co variance of Security with the Market Formulas Beta of an Asset or Security Co variance between Security and Market Variance of the market Or Change in return of security Change in return of market Meaning of obtaining Beta estimate of company It means to know risk associated with the company It show sensitivity of company with market variance When Security has Beta Greater than 1 It    See Answer
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d. Obtain a beta estimate for your company. What does it mean?Examine and compare the annual total returns and average return ofyour stock with that of the S&P500’s returns. Did it follow theBeta estimate? It would be helpful to illustrate the returns of thecompany’s stock and the market. in general how would we comparebeta and returns? what would we say if returns higher or lower thanthe s&p 500?

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