New answers tagged market
Depends on what you want to measure. Personally, as these are all tech stocks, I would go with the NASDAQ. So then you have the betas relative to other tech stocks. However, if you are a truly global investor then you could best proxy the market by MSCI world.
As the six different stocks belongs to different indices, first you need to calculate separate betas for each of them. Now considering that the the six different stocks belong to same portfolio, you need to calculate portfolio beta, standard deviation and expected return at portfolio level by assigning weights to each of the stock. In this way you can have ...
In my opinion previous answers are a bit off goal. The CAPM is, at least in your primarily role, an equilibrium model. Is shared opinion that the investors are "risk adverse"and, as a consequence, the risk premium $R_m - R_f$ cannot be negative, but strictly positive. If your target is estimate the risk premium you are not constrained to use the data in ...
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