Difference between revisions of "Average stock's beta"
(Created page with "Average stock's beta, b<small>A</small> = b<small>M</small> is the beta coefficient (b) is a measure of a stock's market risk. It measures the stock's volatility relative...") |
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
:[[Average stock's beta]], b<small>A</small> = b<small>M</small>. The beta coefficient (b) is a measure of a stock's market risk. It measures the stock's volatility relative to an average stock, which has a beta of 1.0. | :[[Average stock's beta]], b<small>A</small> = b<small>M</small>. The beta coefficient (b) is a measure of a stock's market risk. It measures the stock's volatility relative to an average stock, which has a beta of 1.0. | ||
| + | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
| + | :[[Average stock's beta]], bA. By definition, bA 5 1 because an average-risk stock is one that tends to move up and down in step with the general market. | ||
==Related concepts== | ==Related concepts== | ||
Latest revision as of 23:52, 1 November 2019
Average stock's beta, bA = bM is the beta coefficient (b) is a measure of a stock's market risk. It measures the stock's volatility relative to an average stock, which has a beta of 1.0.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Average stock's beta, bA = bM. The beta coefficient (b) is a measure of a stock's market risk. It measures the stock's volatility relative to an average stock, which has a beta of 1.0.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Average stock's beta, bA. By definition, bA 5 1 because an average-risk stock is one that tends to move up and down in step with the general market.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
