--%>

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 : Write a Matlab function Fourbar Write a

    Write a Matlab function Fourbar (r1,r2,r3,r4,theta,speed) that animates three cycles of a fourbar linkage having link lengths r1, r2, r3, r4. The function first checks to ensure the mechanism isGrashof (including the change-point c

  • Q : Modeling Cases DRAFT TV COMMERCIALS

    Source: O'Conner, G. C., T.R. Willemain, and J. MacLachlau, 1996. "The value of competition among agencies in developing ad compaigns: Revisiting Gross's model." Journal of Advertising 25:51-63. Modeling Cases

  • Q : Functions of Bank Write some of the

    Write some of the functions of Bank?

  • Q : Policy issued by upper management What

    What would you do when upper management issues a new policy and it was problematic to you? Would you pursue the new policy?

  • Q : Working capital what are the

    what are the disadvantages of having adequate working capital?

  • Q : Accouning Required parts are clearly

    Required parts are clearly describes at the end of the questions and additional resource contains the journal article related to question three.. Approx 2000 word assignment.. First Question is of not more than 1000 words to make memorandum and its example is given at end of assignment and require

  • Q : Define the term Equipment Define the

    Define the term Equipment in Accountancy? Why they are used?

  • Q : Account A structure for showing the

    A structure for showing the effect of market events on a particular asset, liability, equity, earnings, or expense. The effects are measured in terms of dollars. The account looks like as a collection point in the meanwhile the processing of all the transactions involving the balance sheet or inc

  • Q : Merits of standard costing Write down

    Write down the merits of standard costing?

  • Q : A technically oriented software design

    Design: For this assignment you are to produce, one per group, a technically oriented software  design document. As the scope of the project is quite small and basically encompasses an extension to an existing