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Explain what the values of the betas (the slope coefficients in the regression) indicate and discuss...

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Finance

Explain what the values of the betas (the slope coefficients inthe regression) indicate and discuss the
factors that might explain the differences in the values of thebetas of the four companies below:

Coefficient beta

HLG.NZ

0.5883

WHS.NZ

0.3542

RYM.NZ

1.3996

FPH.NZ

1.6321

Answer & Explanation Solved by verified expert
4.2 Ratings (528 Votes)
The beta of an investment security ie a stock is a measurement of its volatility of returns relative to the entire market It is used as a measure of risk and is an integral part of the Capital Asset Pricing Model A stock that swings more than the market over time has a beta above 10 If a stock moves    See Answer
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Transcribed Image Text

Explain what the values of the betas (the slope coefficients inthe regression) indicate and discuss thefactors that might explain the differences in the values of thebetas of the four companies below:Coefficient betaHLG.NZ0.5883WHS.NZ0.3542RYM.NZ1.3996FPH.NZ1.6321

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