World beta concept of a security

Explain the world beta concept of a security.

E

Expert

Verified

World beta measures the sensitivity of returns to security to returns to the world market portfolio. It is the measure of systematic risk of the security in global setting. Statistically, world beta is defined as:

Cov(Ri, RM)/Var(RM),

where :

Ri and RM are returns to the Ith security and the world market portfolio, respectively.

   Related Questions in Financial Accounting

  • Q : Retail or client market and wholesale

    Distinguish between retail or client market and wholesale or interbank market for foreign exchange?

  • Q : Explain Return on Assets or ROA Return

    Return on Assets (ROA): It is an indicator of how gainful a company is associative to its net assets. ROA provides an idea as to how proficient management is at employing its assets to produce earnings. Computed by dividing a company's annual earnings

  • Q : Closed-end country funds Write some of

    Write some of the advantages and disadvantages of closed-end country funds (CECFs) with respect to the American Depository Receipts (ADRs) as means of the international diversification.

  • Q : Investors investing within the lion’s

    Explain why do investors invest within the lion’s share of their funds within the domestic securities?

  • Q : Objective Questions on Sociology 1)

    1) Which large European city declined significantly in population over the past century? A) Paris B) London C) Rome D) Madrid 2) The industrial city was characterized b A) decentralization B) corporate growt

  • Q : Ihi Which of the following adjustments

    Which of the following adjustments is an example of an accrual adjustment? an asset/expense adjustment involving depreciation an asset/expense adjustment involving insurance a liability/expense adjustment involving utility expenses a liability/revenue adjustment involving unearned revenues

  • Q : Importance of international financial

    Explain the importance in studying the international financial management?

  • Q : Services offered by international banks

    Discuss some of services which international banks offer to their customers and market place.

  • Q : Define the term Debtor Define the term

    Define the term Debtor. Is they our client?

  • Q : Function of budgetary control play in

    Describe the function of budgetary control play in cost control? And also write down the requirements for its triumphant execution?

©TutorsGlobe All rights reserved 2022-2023.