What is a good beta?
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What is a good beta?
A stock that swings more than the market over time has a beta above 1.0. If a stock moves less than the market, the stock’s beta is less than 1.0. High-beta stocks are supposed to be riskier but provide higher return potential; low-beta stocks pose less risk but also lower returns.
What is a good portfolio beta?
A positive beta is associated with a tendency of the portfolio to move in the same direction as the market. Portfolios, however, can also have betas greater than 1.0, such that a portfolio with a beta of +1.25 would be expected to earn 125% of the market’s return and so on.
What does a beta of 0 mean?
zero systematic risk
What does a beta of 2 mean?
Essentially, beta expresses the trade-off between minimizing risk and maximizing return. Say a company has a beta of 2. This means it is two times as volatile as the overall market. We expect the market overall to go up by 10%. That means this stock could rise by 20%.
How do you interpret Beta?
The beta coefficient can be interpreted as follows:
- β =1 exactly as volatile as the market.
- β >1 more volatile than the market.
- β <1>0 less volatile than the market.
- β =0 uncorrelated to the market.
- β <0 negatively correlated to the market.
What is a debt beta?
A company’s debt level impacts its beta, which is a calculation investors use to measure the volatility of a security or portfolio. Because unlevered beta removes debt from the equation, the amount of debt a company has does not impact unlevered beta.
Can a risky asset have a negative beta?
Yes. It is possible, in theory, to construct a zero beta portfolio of risky assets whose return would be equal to the risk-free rate. It is also possible to have a negative beta; the return would be less than the risk-free rate.
How do you interpret a negative beta?
If the beta coefficient is negative, the interpretation is that for every 1-unit increase in the predictor variable, the outcome variable will decrease by the beta coefficient value.
What is a good Alpha?
Defining Alpha Alpha is also a measure of risk. An alpha of -15 means the investment was far too risky given the return. An alpha of zero suggests that an asset has earned a return commensurate with the risk. Alpha of greater than zero means an investment outperformed, after adjusting for volatility.
What is Alpha A?
Alpha is a measure of the performance of an investment as compared to a suitable benchmark index, such as the S&P 500. S&P is a market leader in the. An alpha of one (the baseline value is zero) shows that the return on the investment during a specified time frame outperformed the overall market average by 1%.
Is a positive alpha good?
Essentially, alpha reflects the degree to which a stock’s returns meet or exceed the returns generated by the market. A positive alpha indicates the security is outperforming the market. Conversely, a negative alpha indicates the security fails to generate returns at the same rate as the broader sector.
Is Alpha positive or negative?
If alpha is positive, it means that the fund returned more than its expected return, whereas a negative alpha indicates that the fund returned less.
Is Alpha positive or negative charge?
Alpha particle, positively charged particle, identical to the nucleus of the helium-4 atom, spontaneously emitted by some radioactive substances, consisting of two protons and two neutrons bound together, thus having a mass of four units and a positive charge of two.
Is Beta positive or negative?
Beta particles have a mass which is half of one thousandth of the mass of a proton and carry either a single negative (electron) or positive (positron) charge.
Why is a beta particle negative?
Radionuclides that have an excess of neutrons in the nucleus (neutron-rich) usually emit beta radiation when they transform. The beta particles emitted have all the characteristics of electrons. That is, each particle has a mass equivalent to an electron and a single negative charge.
Are alpha particles dangerous?
Alpha particles lack the energy to penetrate even the outer layer of skin, so exposure to the outside of the body is not a major concern. Inside the body, however, they can be very harmful. The way these large, heavy particles cause damage makes them more dangerous than other types of radiation.
Which is most dangerous alpha beta or gamma?
Radioactive materials that emit alpha and beta particles are most harmful when swallowed, inhaled, absorbed, or injected. Gamma rays are the most harmful external hazard. Beta particles can partially penetrate skin, causing “beta burns”. Alpha particles cannot penetrate intact skin.
What are the 4 types of radiation?
Now, let’s look at the different kinds of radiation. There are four major types of radiation: alpha, beta, neutrons, and electromagnetic waves such as gamma rays. They differ in mass, energy and how deeply they penetrate people and objects.
What is the strongest ionizing radiation?
gamma
What is the most penetrating radiation?
Gamma radiation
What is the most serious effect of radiation on humans?
Exposure to very high levels of radiation, such as being close to an atomic blast, can cause acute health effects such as skin burns and acute radiation syndrome (“radiation sickness”). It can also result in long-term health effects such as cancer and cardiovascular disease.
What type of radiation has the longest range in air?
Gamma radiation, unlike alpha or beta, does not consist of any particles, instead consisting of a photon of energy being emitted from an unstable nucleus. Having no mass or charge, gamma radiation can travel much farther through air than alpha or beta, losing (on average) half its energy for every 500 feet.
What are the 5 types of radiation?
Radiation
- electromagnetic radiation, such as radio waves, microwaves, infrared, visible light, ultraviolet, x-rays, and gamma radiation (γ)
- particle radiation, such as alpha radiation (α), beta radiation (β), proton radiation and neutron radiation (particles of non-zero rest energy)
What is beta stopped by?
Beta radiation, consisting of electrons or positrons, is stopped by a thin aluminum plate, but gamma radiation requires shielding by dense material such as lead or concrete.
What is Alpha stopped by?
Alpha radiation consists of helium-4 nucleus and is readily stopped by a sheet of paper. Beta radiation, consisting of electrons, is halted by an aluminium plate. Gamma radiation is eventually absorbed as it penetrates a dense material.
