Andrew Stolz
AUGUST 5, 2020
Investments are exposed to two types of risk: systematic and unsystematic. Systematic risks are uncontrollable market risks due to unavoidable external factors. Systematic risks include interest rates, economic fluctuations, political unrest, pandemics, etc.
Valutico
FEBRUARY 13, 2025
It quantifies an asset’s risk relative to the market. Beta’s limitations include its reliance on historical data, potential inability to capture short-term fluctuations and company-specific risks, and sensitivity to benchmark choice.
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Valutico
APRIL 17, 2023
The beta factor is used to calculate the cost of equity in the WACC formula and is a measure of a stock’s systematic risk, or the risk associated with the overall market. It is a measure of the volatility of a stock in relation to the market as a whole. A beta of 1.0 indicates a stock that is more volatile than the market.
Valutico
APRIL 17, 2023
The beta factor is used to calculate the cost of equity in the WACC formula and is a measure of a stock’s systematic risk, or the risk associated with the overall market. It is a measure of the volatility of a stock in relation to the market as a whole. A beta of 1.0 indicates a stock that is more volatile than the market.
Valutico
APRIL 12, 2023
The beta factor is used to calculate the cost of equity in the WACC formula and is a measure of a stock’s systematic risk, or the risk associated with the overall market. It is a measure of the volatility of a stock in relation to the market as a whole. A beta of 1.0 indicates a stock that is more volatile than the market.
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