Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

What is a good beta for a stock

27/04/2021 Client: muhammad11 Deadline: 2 Day

Is Positive Beta Better than Negative Beta?

A Beta factor represents risk in a financial instrument or commodity. Explain the reasons for changes in beta and explain if one should be more concerned with a negative versus positive factor. Be sure to reference volatility. Please provide an example of negative Beta.

Student Number #1 Response:

Beta is the measure of volatility or systematic risk of a security as compared to the whole market (Bates, Kidwell, Parrino, 2015). It is often used to calculate expected returns and beta that is less than 1 is less likely to be volatile while a beta over 1 will be more volatile than the market. An investor should be concerned with negative and positive factors of securities because this will determine how someone chooses to invest. A stock with a positive beta that is greater than one may be more volatile with higher risk but also offer higher returns, examples would be something like tech stocks as opposed to utilities stocks which usually have a beta of less than one and offer more stability but a lower rate of return.

A good example of negative beta would be bonds in a portfolio which has the characteristics of negative beta because it usually moves opposite of the market (Caplinger, 2012). By having bonds which provide negative beta in a portfolio like a 401k it kind of offers some protection against positive beta which because of their volatility can make and lose a lot of value. The bonds with negative beta can act as a counter balance insuring that even though there will not be a high return rate there will also not be huge losses.

References:

Bates, T. Kidwell, D. Parrino, R. (2015). Fundamentals of Corporate Finance. 3rd Edition. Retrieved 04/27/2016

Caplinger, D. (2012). Negative beta stocks: Worth buying? Retrieved 04/27/2016 from

http://www.fool.com/investing/beginning/2012/12/12/negative-beta-stocks-worth-buying.aspx

Student Number #2 Response:

Anyone who plays the stocks has a firm understanding of beta. One can look at the beta of a stock to get a better understanding of how the stock reacts to the market. According to investopedia.com, "Beta is calculated using regression analysis, and you can think of beta as the tendency of a security's returns to respond to swings in the market. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market. For example, if a stock's beta is 1.2, it's theoretically 20% more volatile than the market" (2015).

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Maths Master
Top Writing Guru
Study Master
Writing Factory
Assignment Hub
Finance Master
Writer Writer Name Offer Chat
Maths Master

ONLINE

Maths Master

I have read and understood all your initial requirements, and I am very professional in this task.

$32 Chat With Writer
Top Writing Guru

ONLINE

Top Writing Guru

I have read and understood all your initial requirements, and I am very professional in this task.

$33 Chat With Writer
Study Master

ONLINE

Study Master

I have read and understood all your initial requirements, and I am very professional in this task.

$22 Chat With Writer
Writing Factory

ONLINE

Writing Factory

Give me a chance, i will do this with my best efforts

$16 Chat With Writer
Assignment Hub

ONLINE

Assignment Hub

I will cover all the points which you have mentioned in your project details.

$50 Chat With Writer
Finance Master

ONLINE

Finance Master

Give me a chance, i will do this with my best efforts

$42 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Get-messagetrace is not recognized - Egyptian numbers 1 30 - Ambition in act 1 scene 5 macbeth - Hason raja life story - Reflective Analysis: Risk Management and the Role of Managed Care - Bs 8203 2001 a1 2009 - Tesla strategic business units - Parallel sheets of current - Total sum of square formula - The absorption of ink by blotting paper involves - Business Conti Plan & Disaster Recovery Plan - What does opposite mean in math - 2016 annual report for billabong international limited asx bbg - Performance improvement plan examples - Draw a lewis structure for so2 in which all atoms - Buffon epochs of nature - The handsomest drowned man in the world answers - Institute for behavioral training - Worldview and nursing process personal statement - Does macbeth listen to the witches warnings - Roller bending machine project report - Kevin cheng tv shows - NRS 451-VN-0501 Nursing Leadership - The i am statements of christ - Problem solving c++ 9th edition pdf - Week 5 word of the week - Honda gx25 oil type - Insert functions in cells h18:h22 to calculate basic summary information. - Densmore competency map study notes - Genetics sex linked genes worksheet - In your audit of jose oliva company - Emerging trends in industrial relations - Work health and safety whs management plan - The breakfast club letter to principal - Lección 6 lesson test vhl - Certificate iv in trichology courses - 22 steps per minute metronome - Twinkle star childcare beecroft - Find the length of the loop of the given curve. x = 12t − 4t3, y = 12t2 - Forces acting on connecting rod - Chapter 3 case studies answers - Relative positions body sections homework answers - Essay Writing - Discussion - Sample sop for international business management - Practice test - Gender inequality argumentative essay - Methods to track a bill and participate in lobbying efforts - Victorian premier reading challenge - Phet models of the hydrogen atom answer key - Food safety program template records - Good introduction speech about yourself - Photosynthesis inputs and outputs diagram - Bill nye wave video quiz - Chapman university campus map - Contraindications for facial treatments - I need 1200 words 3 answer the Questions - Why do you think that Islam was so successful - Marriages families and relationships 13th edition lamanna - Jeffrey sacksner - A credit sale is made on july 10 for $900 - Unnatural causes in sickness and in wealth transcript - Organic chemistry reaction pathways - Qantas club dress code - Israel-Palestine Case Study - MKTG201 Week 3 Asignment - Strategic marketing multiple choice questions - Global atmospheric circulation worksheet - 1d william street tranmere - Back At it ... In depth Discussion questions and responses - Confidence interval z scores - Stoichiometry lab vinegar and baking soda answer key - 2006 physics exam 2 - Assign 6 inter - Narrative Descriptive Essay - How has human activity altered the phosphorus cycle - Tax identification number spain example - Which of the following statements is true of cooperative advertising - Ip man first form - Assignment help - Large herbivorous dinosaur crossword 9 letters - Who distributes honest tea - As 1530 part 2 flammability index - Office 2010 box plot - How to reduce the spread of pathogens - Psyc - Lintrose nominees pl v king - Threaded rod nut driver - Blackwood pool werribee gorge - What can incumbent firms do to counter disruptive innovations - Risk management - Inductor charging and discharging - Ba 4560 op amp - SC - Group fitness feedback form - Molecular orbital theory worksheet with answers - Cgi money cnn tools net worth - Unit 3 hhd exam - Hawaiian name translation list - A step ahead st marys