We're Open
+44 7340 9595 39
+44 20 3239 6980

What is the estimated beta coefficient of your company?

  100% Pass and No Plagiarism Guaranteed

What is the estimated beta coefficient of your company?

Lexon Technologies

Assignment: Using Yahoo! Finance find the value of beta for your reference company. Write a two page paper discussing the following items: a. What is the estimated beta coefficient of your company? What does this beta mean in terms of your choice to include this company in your overall portfolio? b. Given the beta of your company, the present yield to maturity on U.S. government bonds maturing in one year (currently about 4.5% annually) and an assessment that the market risk premium (that is - the difference between the expected rate of return on the `market portfolio` and the risk-free rate of interest) is 6.5%, use the CAPM equation in order to find out what is the present `cost of equity` of your company? Explain what is the meaning of the `cost of equity`. c. Choose two other companies, look up their "Beta" and report the names of these companies and their betas. Suppose you invest one third of your money in each of the stocks of these companies. What will the beta of the portfolio be? Given the data in (b), what will the Expected Rate of Return on this portfolio be? Do you feel that the three-stock portfolio is sufficiently diversified or does it still have risk that can be diversified away? Explain. Assignment Expectations: In a two-page report explain your answers thoroughly with references to the background materials. Make sure to demonstrate a strong understanding of the concept of beta and the risk/return trade off.
Lexon TechnologiesBeta is a size of the reserve`s correspondence with the progress of the market. For one to get a complete expanded collection and reduce threats, a financier should choose stocks that match with, inversely matches with and or are free from the market. A beta of 1.0 defines the market. Stocks which appreciate (or depreciate) more than the circulation of the market possess >1. 0 stocks which go less than markets that posses betas < 1.0. Stocks that reversely correspond have unconstructive betas. A beta of Lexon Technologies which stands at .2156 implies that it progresses with the market though it is approximately 80% less unstable than it. This could be a nice option for stock which is autonomous in a healthy broadened docket (Beattie, 2010). The CAPM (Capital Asset Pricing Model) is a way of pricing securities and ascert...

100% Plagiarism Free & Custom Written,
Tailored to your instructions

International House, 12 Constance Street, London, United Kingdom,
E16 2DQ

UK Registered Company # 11483120

100% Pass Guarantee


View our samples written by our professional writers to let you comprehend how your work is going to look like. We have categorised this into 3 categories with a few different subject domains

View Our Samples

We offer a £ 2999

If your assignment is plagiarised, we will give you £ 2999 in compensation

Recent Updates


  • Title: What is the estimated beta coefficient of your company?
  • Price: £ 99
  • Post Date: 2021-09-24T08:12:58+00:00
  • Category: Essays
  • No Plagiarism Guarantee
  • 100% Custom Written

Customer Reviews

What is the estimated beta coefficient of your company? What is the estimated beta coefficient of your company?
Reviews: 5

A masterpiece of assignment by , written on 2020-03-12

Oh my god! This writing company has saved me from so many bothering and figured out my problem in the best way possible. I am not fond of reading and when this book review was given to me as part of my coursework, I went into depression. But I must say, my writer came up with an amazing book review covering all the major aspects of the book nicely. I am waiting for other assignments to come so that I would come here again. The place is good and quite reasonable as well which makes it easy for me to manage my budget.
Reviews: 5

A masterpiece of assignment by , written on 2020-03-12

I have been taking help from Insta Research since 2015 and believe me, this place is incredible in giving the best help in assignments and essays. I also ask them to run plagiarism in my essays that I have written, and they always gave me accurate results. I am literally blessed to have a strong bonding with this site so that in any need of urgency, I contact them and find them always beside me. Thank you!