Such organizations have a higher extent of fixed assets in comparison to the total assets or resources. When examining the impact of capital intensity on business investment decisions, it is crucial to delve into the nuances of this concept. Capital intensity refers...
Our estimates are based on past market performance, and past performance is not a guarantee of future performance. Obviously if ur using the CAPM to arrive at cost of capital in a situation of the firm having negative beta, ur cost of capital will be lower than ur...
Beta is used in the capital asset pricing model (CAPM), a widely used method for pricing risky securities and for generating estimates of the expected returns of assets, particularly stocks. The CAPM formula uses the total average market return and the beta value...
Other funds concentrate on stocks in sectors that intrinsically have low betas, such as Utilities Select Sector SPDR Fund and Global X NASDAQ 100 Covered Call ETF. Beta is a measure of a stock's volatility in relation to the market. It essentially measures the...
Put options and inverse ETFs are designed to have negative betas, which means they track the opposite of the benchmark's trends. There are also a few industry groups, such as gold miners, where a negative beta is typical. A beta value greater than 1.0 signifies that...