Question
If the beta of the market index is 1 and the standard
deviation of the market index increases from 12% to 18%, what is the new beta of the market index?Solution
The beta of the market is 1 irrespective of the market return. The stock returns are calculated with reference to the market return and the stock beta is the measure of the systematic risk of the market for the stock.
More Financial Management Questions
IMPLEMENT
Satish heard it from the horse's mouth means:
The noxious fumes made it hard to breathe.
A lady who remains unmarried
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Select the incorrectly spelt word.
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Something that is not able to be changed or reversed
In each question below, four words printed in bold type are given. These are numbered (A), (B), (C) and (D). One these words printed in bold might eit...
Select the most appropriate antonym of the given word.
Indolent
