if the beta for a stock is greater than 1, his expected return is greater than the expected market return??
have you ever heard of opportunity cost? Well…explain to me the opportunity cost I have in replying to this question.
haha…later I can answer you another one…that’s your opp cost
and I am not talking about the CAPM formula
There is a nice weather in argentina? I wish I could be there! Usually you have: Beta >1 bullish on the stock Beta <1 bearish… I hope this help
If volatility of the stock is higher than market volatility, you’d expect its return to be higher as well.
Beta is a measure of systematic risk. Beta=1 is the correlation of the market with itself. Beta>1, according to CAPM, greater systematic risk gets compensated with a greater expected return.
very helpful, thank you!!
great weather!!! very shinny