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Beta Factor

Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Beta Factor

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by AvatarJohn Moffat.
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  • October 20, 2014 at 6:53 am #205066
    AvatarOscar
    Member
    • Topics: 25
    • Replies: 9
    • ☆

    Beta factor measures the systematic risk of a security in relation to the “stock market” as a whole.

    Does the “stock market” here includes shares and other debts? So when the stock market as a whole (shares and debts) fall by 1%, how much % fall in the security (as shown by the beta).

    Can you explain equity beta and debt beta?

    October 20, 2014 at 5:48 pm #205143
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    If you want me to answer then ask in the Ask the Tutor forum.
    This forum is for students to help each other.

    (Although if you watch the free lecture on this then all of your questions are answered there!)

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