Question
What the values of the betas(the slope coefficients in the regression) indicate and discuss the factors that might explain the differences in the values of
What the values of the betas(the slope coefficients in the regression) indicate and discuss the factors that might explain the differences in the values of the betas of a trading companies, a company in the healthcare sector and a power generation company.
Beta coefficients of these three type of companies are below:
Trading companies | |
Company A | 0.7226 |
Company B | 0.7377 |
Healthcare Sector | |
Company C | 0.4573 |
Power generation company | |
Company D | 2.2784 |
Should Josh decide to invest in all the four companies in equal proportions? compute the return and risk of the portfolio.
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