Beta A stock has a beta of 1.5. If the market sees a jump in value...

Question

Question

Beta

A stock has a beta of 1.5. If the market sees a jump in value of 10% over a particular period,

what is the expected jump in value for the stock (in percent terms?)

business finance

Answer 1

Answer #1

Ans: - Beta is defined as: - Change in Stock Price / Change in Market Value

As in given question beta = 1.5, Change in stock = 10% Increase

Hence change in stock = 1.5*10 = 15% Rise in Value

Answer 2

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