Risk Assessment of Strident Marks Essay Example | Topics and Well Written Essays - 500 words

Risk Assessment of Strident Marks - Essay ExampleThis also computes a covariance of returns between all the stocks and the market value where they have positive covariance, and those that move in opposite directions will have negative covariance. The expected return and variance of several stocks, a portfolio of these stocks that has a desired variance (risk) with a certain expected return. The expected return is the measurement of investment risk, what variances can be expected by the nub of investment. CAPM formula. The CAPM formula isBeta is the overall risk in investing in a large market, like the New York Stock Exchange Beta is the R-squared statistic gear up in the regression analysis. The Beta of a Strident Marks is risk compared to the Beta (Risk) of the overall market. Beta indicates the volatility of the security, relative to the asset class (Frontline Systems, Inc. 2006).In conclusion, the Beta statistic defined by R-Square is positive 1 in the Market analysis, and 0.00 4 in the Stock analysis, it can be assumed, provided that the stock and market follow a normal distribution, that the stock holds a 40% greater risk than that market