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Issue:

Business

 

Written by:

Jeffrey M

 

Date added:

August 20, 2013

 

Level:

 

Grade:

A

 

No of pages / words:

5 / 1170

 

Was viewed:

5793 times

 

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Essay content:

EBay Inc has a beta of 2.111 which means that theoretically the stock is about 110% more volatile than the market. km for the equation is equivalent to S&P 500 return for the 14 weeks, which is (1261.40/1246.60 ?V 1) = 1.187% krf is the corresponding risk free rate used. It is 1.04% over the past 14 weeks...
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It is 1.04% over the past 14 weeks. .1410 = 0.0104 + 2.11(0.0119- 0.0104) + ?N The alpha (?N) term for my security portfolio is 0.1274 or 12.7435% The basic CAPM formula used above states that the stock?¦s return is equal to the risk free rate plus the risk premium. Extrapolating from the CAPM formula (also called Jensen?¦s alpha), the unsystematic risk that reflects investment performance over and above the risk associated with the systematic or market wide factor is called alpha (?N)...
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