Compute betas against local indexes
Does it make any sense to compute betas against local indexes while a company has a great part of its operations outside such local market? I have two illustrations: BBVA and Santander.
Expert
Both the betas computed against local indexes and also those calculated against international indexes are not very helpful, as we can notice from the following graphs that demonstrate the betas of Santander calculated along with everyday data throughout the past 5 years.
Who explained market-neutral delta hedging?
Is there any consensus among the chief authors in finance concerning the market risk premium?
Inventory is an important part of WCR estimation. It is a current asset, which depletes over period of time. Also, it requires creation of facility, which would help in storing the inventory and estimate the associated cost of maintaining and transporting it. The esti
The market risk premium is the difference between the historical return on the stock market and the return on bonds. But how many years does “historical” imply? Shall we use the arithmetic mean or the geometric one?
Are there any methods to analyze and to value seasonal businesses?
How can optimal capital structure be calculated?
Is this true that the cost of its equity is zero, if a company does not distribute dividends?
Flow variables: Any variable, whose magnitude is evaluated over a time period, is termed as glow variable.
The ROE is the ratio among net income and Shareholders’ equity. The meaning of Return on Equity is return to shareholders. Therefore, is ROE a correct measurement of the return to shareholders?
Explain the result of volatility structure.
18,76,764
1941268 Asked
3,689
Active Tutors
1421794
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!