What would be the beta of an aggressive common stock?
Answers
Answered by
0
A beta of greater than 1 indicates that the security's price is theoretically more volatile than the market. For example, if a stock's beta is1.2, it's theoretically 20% more volatile than the market.
Answered by
2
An "aggressive" common stock would have a "beta" equal to zero.
As per the capital-asset pricing model (CAPM), a security's demanded in return is similar to the risk-free rate and add a bonus equivalent to the security's beta. The higher the beta, the higher the security required. Inc. average stock has a beta of 0.90, while Acme Dynamite Company average stock has a beta of 1.80. The required return on the exchange is 10 percent, and the risk-free rate is 6 percent.
Similar questions