On the other hand, systematic risk is the risk that Precipitate Gold's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Precipitate stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. The company has an alpha of 0.5972, implying that it can generate a 0.6 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). ![]() Precipitate Gold's volatility is measured either by using standard deviation or beta. ![]() Standard deviation will reflect the average amount of how precipitate stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point. What Drives a Precipitate Gold Price Volatility?Several factors can influence a stock's market volatility: IndustrySpecific events can influence volatility within a particular industry.
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