Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a beta factor represents risk in a financial instr

A beta factor represents risk in a financial instrument or commodity. The risk involved here...

70.2K

Verified Solution

Question

Finance

A beta factor represents risk in a financial instrument or commodity. The risk involved here is volatility risk, which will give you an understanding of how the security is expected to move in the market. Understanding volatility can help you build portfolios that will meet investment goals.

  • Explain the reasons for changes in beta and explain if one should be more concerned with a negative or positive factor. Be sure to reference volatility.
  • Please provide an example of negative beta.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Analysis and Interpretation of Liquidity and SolvencyHeadquartered in Calgary, Alberta, Husky Energy Inc. is...

Accounting
Q

Solve the second-order linear differential equation y?? ? 2y? ? 3y = ?32e?x using the...

Basic Math
Q

(a) Describe two non-forfeiture options. (b) For each one of the non-forfeiture options you described in part...

Finance
Q

The geology of a proposed major industrial site is thought to consist of a thin layer...

Civil Engineering
Q

Procedural law defines the conditions under which justice actors must act. Substantive law defines crime and...

Psychology
Q

7. Matilda recently took a statistics quiz inher math class. In one question, 45 of900...

Basic Math
Q

Evaluate the integral 14 4xe 3x dx X C

Calculus
Q

Given f x function 4x 7 8x 8 what is the end behavior of the...

Algebra
Q

Please answer the following question in 175 word response: Can you explain the...

Accounting
Q

The year-end financial statements of Grunewald Company contained the following elements and corresponding amounts: Assets...

Accounting
Q

An investment offers to quadruple your money in 36 months (dont believe it). What rate...

Accounting
Q

Required information [The following information applies to the questions displayed below] Harbortown Marine Products (HMP)...

Accounting