Stock Market Flashcards
1
Q
Beta Coefficient
A
In finance, the beta is a statistic that measures the expected increase or decrease of an individual stock price in proportion to movements of the stock market as a whole
Beta greater than 1% indicates greater volatility & beta less than 1% less volatility.
2
Q
Required Rate of Return =
A
Required rate of return = Risk-free rate + Beta (Market rate - Risk-free rate)
