Sunday, December 13, 2009

(105)---DETERMINANTS OF BETA (2).

Determinants of Beta As we discussed above beta depend on three fundamental factors: the nature of business, the operating leverage and the...

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Friday, December 11, 2009

(104)---DETERMINANTS OF BETA

Determinants of Beta We have explained that beta is the ratio of covariance between returns on market and a security to variance of the mar...

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Wednesday, December 9, 2009

(103)---BETA ESTIMATING

Beta Estimation Net present value of an investment is the discounted value of its future cash flows. The capital asset pricing model risk r...

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Monday, December 7, 2009

(102)---STEPS IN CALCULATING EXPECTED RETURN UNDER ARBITRAGE PRICING THEORY

Steps in Calculating Expected Return under Arbitrage Pricing Theory The following three steps are involved in estimating the expected retur...

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