A high ‘Beta’ value for a stock indicates higher volatility of the stock. A stock with a beta value of 1 is just as risky as the stock market. What is correct for a stock, having negative beta value?
A negative beta coefficient does not necessarily mean absence of risk. A negative beta correlation would mean an investment that moves in the opposite direction from the stock market. When the market rises, then a negative-beta investment generally falls. When the market falls, then the negative-beta investment will tend to rise. This is generally true of gold stocks and gold bullion. Because gold is seen as a more secure store of value than currency, a market crash prompts investors to sell their stocks and either move into cash (for zero beta) or buy gold (for negative beta). An investment with zero beta means no volatility and no risk.
A B and C are three mutually exclusive and exhaustive events associated with a random experiment. If P(B) = (3/2) P(A) and P(C) = (1/2) P(B) then value...
Which of the following satisfies the time and factor reversal test?
For a group of 100 students, the mean and standard deviation of scores were found to be 30 and 5 respectively. Later on it was discovered that the scor...
If the population kurtosis of the observations 16,12,6,2,4,10 is 1.7414, then population kurtosis of the 8,6,3,1,2,5 is
The purchasing power of money is equal to:
Using the method of semi-averages, secular trend is measured when:
Which of the following is the most relevant for deriving a point estimate?
The limits of multiple correlation coefficient R1.23 are:
Which one is not basis of classification of data.
Second differencing in time series can help to eliminate which trend?
(I) Quadratic trend
(II) Linear trend