--%>

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 : Capitalize earnings To transfer amounts

    To transfer amounts from retained earnings to contributed capital through stock dividends. The effect is to decrease retained earning and increase the stock account. Stock dividends also permanently retain the earnings in the corporation by moving it out of the retain

  • Q : Describe the term Operating Expenses

    Describe the term Operating Expenses in business accountancy?

  • Q : Capitalization Method for Goodwill

    Capitalization Method: (Goodwill method): In this technique capitalized value of the firm is computed on the basis of normal rate of return. Difference between the capitalized value and real capital employed is termed as goodwill.

  • Q : Define Budget Manual Give a short

    Give a short introduction of the term ‘Budget Manual’?

  • Q : Advantages and disadvantages of gold

    Write the advantages and disadvantages of the gold standard.

  • Q : Conversion and competitive effects of

    Discuss the conversion and competitive effects of exchange rate changes on the firm’s operating cash flow.

  • Q : Market participants in foreign exchange

    Who are market participants within the foreign exchange market?

  • Q : Whether MNC open their manufactoring

    For most global companies, China symbolizes a very attractive market in terms of size and growth-rate. Yet, it ranks lower in words of economic freedom and higher in political risk than other countries' markets because it has a communist government. Despite such risks

  • Q : What is Balance of payments Define the

    Define the term Balance of payments.

  • Q : What is Internal Communication Internal

    Internal Communication: Employee or Organizational Communication refers to the phenomenon of interaction among employees that exist in organizations. In other words, it could also be termed as Internal Communications.

    Discover Q & A

    Leading Solution Library
    Avail More Than 1437661 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1939903
    Asked

    3,689

    Active Tutors

    1437661

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment

    ©TutorsGlobe All rights reserved 2022-2023.