In: Finance
AT&T’s reported Beta is .44 while Verizon’s Beta is .57. This means:
AT&T is more volatile than Verizon |
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AT&T and Verizon are less volatile than the market overall. |
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Verizon may be slightly more volatile than the overall market |
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None of these |
If I bought 100 shares of Apple at $250 per share and sold them one year later at $310 per share, what is my total capital gain?
$6,000 |
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25% |
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$60 |
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None of these |
note:if you are not 100% sure please don't give answers.
AT&T’s reported Beta is .44 while Verizon’s Beta is .57. This means:
AT&T and Verizon are less volatile than the market overall.
Option B is correct
The beta of market is 1. Both AT&T and Verizon have a beta of less than 1, which implies that their volatility is less than the volatility of the market.
Option A is incorrect because Verizon is more volatile than AT&T because Verizon's beta is higher than that of AT&T.
Option C is incorrect because Verizon is less volatile than the market because its beta is lower than 1.
If I bought 100 shares of Apple at $250 per share and sold them one year later at $310 per share, what is my total capital gain?
Capital gain = (Selling price - Purchase price) * Number of shares
Capital gain = (310 - 250) * 100
Capital gain = $6,000 (Option A is correct and C is incorrect)
Capital gain = (Selling price/Purchase price) - 1
Capital gain = (310/250) - 1
Capital gain = 0.24
Capital gain = 24% (Option B is incorrect)