It is different from the asset beta of the firm as the same changes with the company’s capital structure, which includes the debt portion.Moreover, high & low ratio implies high & low fixed business investment cost, respectively. read more of the firm, which has financial leverage Financial Leverage Financial Leverage Ratio measures the impact of debt on the Company’s overall profitability. In statistics, beta is the slope of a line that can be calculated by regressing stock returns against market returns. It's used to analyze the systematic risks associated with a specific investment. Equity Beta is commonly referred to as levered beta, i.e., a beta Beta Beta is a financial metric that determines how sensitive a stock's price is to changes in the market price (index). It compares the volatility associated with the change in prices of a security. Equity Beta measures the volatility of the stock to the market, i.e., how sensitive is the stock price to a change in the overall market.
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