What is the beta of the portfolio held by Blue Co.?

Q: The wider the dispersion of returns on a stock, the:

A: Investors evaluate the portfolio or security on the basis of risk profile. The risk profile can be…

Q: Briefly explain what the Beta of a stock means. What values can it take and what do these imply?…

A: Beta is a measure of a stock's volatility in relation to the overall market. If a stock moves less…

Q: What’s the difference between a stock’s current market price and its intrinsic value?

A: Stock Current market price is the price at which the stock traded in the market.   Intrinsic value…

Q: Explain an example of Return on equity.

A: Return on equity (ROE) is a measure of financial performance calculated by dividing net income by…

Q: Return on equity formula?

A: RETURN ON EQUITY (ROE) IS A RATIO THAT PROVIDES INVESTORS WITH INSIGHT INTO HOW EFFICIENTLY A…

Q: Define the terms covariance and correlationcoefficient. How are they related to one another,and how…

A: Covariance refers to the situation which tells about the association between two variables how they…

Q: Define average stock’s beta

A: Beta tells about the change in stock’s return given to change in market risk.

Q: 5. What is a multi-factor model technique and why is it used in fixed-income portfolio management?

A: Fixed income portfolio comprises of the securities that generate regular income to the investors at…

Q: (4) What is a replicating portfolio? What isarbitrage?

A: Replicating Portfolio It's a pool of assets generated for replicating the pool of liabilities' cash…

Q: How do you calculate the Treynor ratio for the AMD stock?

A: Treynor ratio is referred to as the portfolio performance, which used to measure regarding the…

Q: What does the meaning of maximum and minimum price in the stock performance graph? how to know which…

A: Succinctly summarized, a stock chart is a graph that illustrates the price of a stock over a certain…

Q: What stock valuation models are available?

A: The stock valuation models as follows: Absolute valuation: This method mostly emphases on finding…

Q: How are stocks characterized? In detail

A: Stock are important sources of capital and company raises capital through the stock.

Q: How does a stock price play a role in ROA or ROE

A: Return on Equity (ROE) is the ratio which defines the company’s efficiency to utilize investors…

Q: Which is the best measure of risk for a single asset held in isolation, and which is the best…

A: For a single asset kept in isolation, the coefficient of variation shall be considered as the best…

Q: what is base stock methods?

A: The base stock method is a valuation technique for the inventory asset, where the minimum amount of…

Q: What is a stock’s volatility?

A: Stock Volatility:   Volatility is defined as a statistical measure of the dispersion of the returns…

Q: beta for a stock

A: Introduction: Beta can be defined as a metric which helps in measuring the volatility of a stock…

Q: What is diversification? How does the risk of a diversified portfolio compare with the risks of the…

A: Diversification is a key phenomenon used by investors in portfolio management. It is explained…

Q: What is relationship between the market risk of a stock and it's expected return?

A: Expected return is directly related to the market risk . Market risk is represented by beta. Higher…

Q: 2. What are the two types of fixed-income portfolio management strategies and why is each used?

A: The portfolio composed of securities resulting in the regular cash flows which will ultimately helps…

Q: Why is beta the theoretically correct measure of a stock’s risk?

A: Introduction: Risk refers to the degree of volatility involved in the anticipated return on…

Q: How do you calculate the beta of stock?

A: Beta is the measure of stock's volatility to the overall market, and is calculated as-

Q: How GARCH (generalized ARCH model) model is applied to Stock Price Volatility?

A: GARCH model is one of the models that is usually used by the financial analysts. The financial…

Q: how is price oc preffered stock gotten

A: The cost of preferred stock is determined by the dividend payment divided by the net proceeds per…

Q: what are the main features of preffered stocks

A: Preferred stocks : Preferred stocks are the securities, whose holders have a stake in the company.…

Q: What role does sentiment play to explain stock price volatility? Explain

A: The role of emotion in determining the price of a company is one of the most significant aspects to…

Q: What is meant by informational efficiency, and how does it affect the price of a stock?

A: Stock price fluctuation refers to the variation in the market price of a stock over a period of…

Q: How can the model be used to estimate the predicted return ona stock?

A: Predicted rate of return: Predicting a rate of return is the method of calculating future rate of…

Q: How do I calculate the weighted bias of stocks?

A: Weighted bias of stocks also known as the price-weighted stock index, where each and every stock of…

Q: How can fi nancial statement analysis be used to screen for potential equity investments?

A: The financial statement analysis is used to analyze the financial statements of a company. The…

Q: What are equity carve-outs?

A: Introduction: Merger is defined as the mechanism in which the corporate unit, management and…

Q: What is a market index? How is it used?

A: The economy is affected by the various stocks that are present in the market. Their movement and…

Q: What are Quoted Investments ?

A: Quoted investment: It is an accounting term for investment in share or debenture, which is quoted on…

Q: understand the importance of weighting securities in a portfolio?

A: Answer: Portfolio weights are the percentage of a portfolio’s total value that is invested in a…