Understanding statistical measures of risk is fundamental to understanding investing. In particular, a stock's CAPM beta coefficient
Question:
Understanding statistical measures of risk is fundamental to understanding investing. In particular, a stock's CAPM beta coefficient (?) and R2 value are two important risk measures. Beta measures the degree to which stock and benchmark returns move together, while the coefficient of determination, or R2, represents the strength of the relationship between the stock and the benchmark. The Beta Visualization application provides a rich graphical interface to help visualize and interpret the relationship between the CAPM beta coefficient and R2.
Access the Beta Visualization platform and answer the following questions:
Beta Visualization platform:
1. Find the Beta and R2 of Apple INC, what percent of Apple's stock return can be
explained by the return of the benchmark? Is Apple's stock return more volatile or less
volatile than the market return? How much more or less volatile?