BETA

This query is : Resolved

thanumalayan (Querist)
Follow

12 October 2008 What is "beta" in CAPM of Financial Management? How shall we used in problems in exams? I want to know in detail? Pls.......

KAAPIL

KAAPIL (Expert)
Follow

12 October 2008 BETA : RISK.
IT IS RISK FOR EXTRA RETURNS.
CAPM :l CAPITAL ASSET PRICING MODEL

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
Follow

12 October 2008 Beta is market sensitivity of the stock as compared to that sector or the entire market.
For Example, if the beta of a particular stock is 2, it implies that if the market moves up by 1%, that stock will move up 2% and vice-versa.
CAPM=Beta x Risk Adjusted Market Return.
Risk Adjusted Market Return = Market Return - Risk free return.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Richa Bajoria

Pavithra Doss

Dhananjay Patil

Raviraj ponkshe

CA Saurabh Jadhav

Subscribe Now

BETA

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Article Assistant

GST CONSULTANT

CA Final

Accountant

Manager- Finance and Compliance

GST CONSULTANCY