answersLogoWhite

0

If a stock has a beta equal to one?

Updated: 9/18/2023
User Avatar

Wiki User

βˆ™ 13y ago

Best Answer

A beta of 1 indicates that the security's price will move with the market.

User Avatar

Wiki User

βˆ™ 13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: If a stock has a beta equal to one?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Is the beta of a stock static or dynamic?

The Beta of a stock is always dynamic.


Why is beta the correct measure of a stock riskiness?

Beta measures a stock's volatility (the swings up and down in price). The market as a whole has a beta of 1.0, but each stock is determined a beta value from a history of it's stock movements. Riskiness equates to the stock losing value and high beta stocks are more prone to falling faster.


Stock A has a beta equals 0.8 while stock B has a beta equals 1.6 Which one what statements is correct?

beta is a useless metric. It measures volalotilty. Which a serious investor won’t care about because it just gives them the price to buy more at a cheaper price and a investor knows the instricic value of a stock.


How can you measure volatility using beta?

Beta measures the volatility of a stock in relation to the overall market. A beta of 1 indicates that the stock moves with the market, a beta greater than 1 suggests the stock is more volatile than the market, and a beta less than 1 indicates the stock is less volatile than the market. Traders and investors use beta to assess the risk of a stock in comparison to the market.


What would make a firm's beta increase?

The beta of a firm's stock is dependent on the volatility of the stock relative to the overall market. So if the stock's volatility increased relative to the overall market, it's beta would increase as well.


What is the basis of the beta for investment decision and can you explain the usefulness and relevance of the concept of the beta in the investment?

Beta describes the relationship between the volatility of a stock with respect to the market as a whole (which the market represented by a suitable index). A beta of less than one means that the stock is less volatile than the index, and vice-versa. Basically, if a benchmark returns 10%, and you're considering a stock with a beta of 1.5%, that means the stock needs to have a return of greater than 15% for it to be worthwhile. The related link contains much more information


Where and how do you get beta values for Indian companies?

Look up Bombay Stock Exchange www.bseindia.com and Nantional Stock Exchange www.nseindia.com for beta values of Indian companies.


What does BETA indicate?

Beta is a measure of a stock's volatility. The price of a stock with a beta of 1.0 rises and falls on average with the overall market. A beta greater than 1.0 could mean larger prices fluctuations, and a beta of less than 1.0 indicates a more tame stock. For example, if Company A has a beta of 1.2 and the market goes up 10% in a given period of time then Company A should increase about 12% in value. If the market falls 20% then Company A's stock price should drop 24%.


Is there a connection between the speed of alpha beta and gamma radiation which?

beta equal to 2alpha and gamma equal to 3alpha


If the risk-free rate is .06 and expected return on the market is .13. What is the requred rate of return on a stock that has a beta of 7?

49%....in reality no stock has a beta of 7


What is a BETA number?

In finance, a beta number measures the volatility or risk of a stock relative to the overall market. A beta greater than 1 indicates that the stock is more volatile than the market, while a beta less than 1 suggests the stock is less volatile. It helps investors assess the potential risk and return of a particular investment.


Bill Dukes has 100000 invested in a 2-stock portfolio 75000 is invested in Stock X and the remainder is invested in Stock Y Xs beta is 1.50?

Bill Dukes has $100,000 invested in a 2-stock portfolio. $75,000 is invested in Stock X and the remainder is invested in Stock Y. X\'s beta is 1.50 and Y\'s beta is 0.70. What is the portfolio\'s beta? A. 0.98 B. 1.30 C. 1.39 D. 1.00 E. 1.44 You can also get answer on onlinesolutionproviders com thanks