what is Beta...........................

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zvane

Business Finance

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what is Beta...........................

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Explanation & Answer

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns.

ri -rf = beta(rm-rf)

Reference:

http://www.investopedia.com/terms/b/beta.asp



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