Question

Name a company now with a beta that would be around 1 and choose a company...

Name a company now with a beta that would be around 1 and choose a company with a greater beta and one with a lower beta. What do you think about difference between the three companies?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Company with a beta around 1 would be RELIANCE on Nifty .

Company with beta more than 1 would be Boeing on DJIA

Company with beta less than 1 would HDFC on Nifty.

Beta of 1 indicates that the share prices volatility of the company is same to that of the benchmark Index.

Beta of more than 1 indicates that shares prices of the company are more volatile than that of index.

Beta of less than 1 indicates that share prices of the company is less volatile in comparison to that of a benchmark index.

The difference between these companies are volatillity of the share prices in regards to that of an index which reflects Boeing is most volatile among three and HDFC is least volatile among three.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the beta of the company you work for, or previously worked for? If you...
What is the beta of the company you work for, or previously worked for? If you don't have one then chose a company near you that you are familiar with. Now chose a company with a greater beta and one with a lower beta. What do you think about difference between the three companies? If you were a company what do you think your Beta would be and why?
For this week you will need to read page 343 Finance Matters. What is the beta...
For this week you will need to read page 343 Finance Matters. What is the beta of the company you work for, or previously worked for? If you don't have one then chose a company near you that you are familiar with. Now chose a company with a greater beta and one with a lower bata. What do you think about difference between the three companies? If you were a company what do you think your Beta would be and...
Programmers are hired to work at many different types of companies. Name three companies which would...
Programmers are hired to work at many different types of companies. Name three companies which would hire programmers. Explain what you think the programmer might do for that company. Which of those jobs appeal to you?
If you had to choose, which part of the federal bureaucracy would you like to work...
If you had to choose, which part of the federal bureaucracy would you like to work for? Why? Write about the rules of recruitment of federal bureaucrats. Why and how did the U.S. government switch from the Patronage (Spoils) system to the Merit system? What do you think is the difference between a government bureaucrat and a politician?
Choose one topic from the three topics below to discuss: 250+ words 1. What are the...
Choose one topic from the three topics below to discuss: 250+ words 1. What are the interesting differences you can think of between DNA, RNA and protein biosynthesis? 2. Discuss the mechanisms of Lac operon or Trp operon, what do you think are impressive? 3. What interests you the most about genetic code?
For a company you choose (it might be one you want to work for, will interview...
For a company you choose (it might be one you want to work for, will interview with, or currently work now) research the C-Suite and determine the structure and roles of C-level executives in the company. Describe the CIO role and reporting structure and the relationships you think the CIO has with other C-level leaders. You may describe in words or with a diagram and words. Name the company.
A company currently has a debt to total assets ratio of 35% and the beta of...
A company currently has a debt to total assets ratio of 35% and the beta of the company is 1.05. The company has a current cost of debt of 7.8% and a tax rate of 38%. The current risk-free rate is 4.5% and the market risk premium (the difference between the return on the market and the risk-free rate of return) is 4%. Companies with similar risk characteristics and 40% debt can borrow at 9.5%. Would the company lower its...
1. Pick a company and type in the company's name. 2. Choose Quote. Instructions Answer the...
1. Pick a company and type in the company's name. 2. Choose Quote. Instructions Answer the following questions. (a) What company did you select? (b) What is its stock symbol? (c) What was the stock's trading range today? (d) What was the stock's trading range for the year?
Company X has a beta of 0.70, while Company Y's beta is 1.20. The required return...
Company X has a beta of 0.70, while Company Y's beta is 1.20. The required return on the stock market is 11.00%, and the risk-free rate is 4.25%. A fund has $3500 invested in company X stock and $4500 invested in the stock of company Y. a) What is the difference between X's and Y's required rates of return? b) What is fund's beta? c) What is fund's required rate of return? d) Suppose inflation decreases by 1.5%, what is...
What is the difference between flying around the earth and orbiting the earth on the ISS?...
What is the difference between flying around the earth and orbiting the earth on the ISS? Which do you think takes more energy, and why?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT