A stock had 12% return last yr when overall stock mrkt declined. does it mean negative beta? explain?
Answers: The total return over a year and the beta are only loosely related due to autocorrelation, yesterdays returns are related to todays returns. So, lets assume that a stock matched the index for 230 of 250 trading days last year, though the market went down and the stock went up. All of its difference was in those 20 days. That would imply a positive beta since, with few exceptions, the stock and the market covaried. Beta implies that on a day to day basis, they move together, apart or independently, but it does not imply an annual return.
beta can not be reliably estimated over any time frame less than two business cycles.
the way estimates are prepared for stocks without enough history is to compare them to other stocks in the same industry and then do some serious fundamental analysis.
What is the Microsoft stock business risk?
Answers: The most immediate risk to MSFT is that GOOG's FREE online Excel & Word catches on and nobody buys MSFT Office anymore ...
The death knell of MSFT is when a new operating system comes into widespread use but I wouldn't worry to much about that yet.
I don't know, but may be you can fin it in this sites:
http://nasdaq-business.blogspot.com/
http://amazon-inc.blogspot.com/
http://windows-vista-extra.blogspot.com/
There are many.
People may stop using their products. They may face competition which will cause them to lower prices. Regulators may screw them. They may be sued for anything and lose.
Read the section of their SEC form 10-K on this. Most companies go to lengths to mention the risks they face in a section devoted to that.
Stock marketplace?
I am doing a game at college called the stock marketplace game and I necessitate to know the best stocks that will get you money contained by a few months. I'm not really buying it, but the winner get to go to N.Y.C! The spectator sport lasts a few months surrounded by the spring, like immediately, and I need to know the best money maker of Spring '08Answers: My picks are.
1. SQM - agricultural products. Potasium nitrates
2. GUID - Crime software
3. AIR - aircraft maintainence
4. AMAT - semi conductor and solar equipment
Get undervalued growth stocks that will do powerfully in a bazaar full of recession fears such as health effort, conglomerates, defense or companies whose income wont be solely based on consumer spending.
you could also try foreign companies that are traded on US exchanges
my picks for 3 months would be-
1. WGN - Walgreen pharmacy great for growth and is better next competitors. Also the baby boomers are starting to entail more prescription drugs.
2.ABB - a swiss company that provides power and automation technologies to utility and industry customers worldwide. This company is getting lots of latest contracts in china which will front to increased revenue
3.VFC- a retail company that owns many all right known clothing companies such as Vans and should do in good health in any open market situation because of the diversity in its holdings
4. AIB- is a sandbank in Ireland that deeply has a monopoly. This stock is terribly undervalued and is located contained by a country which is growing economically
5. MER- a financial company that shouldnt have be that effected by the mortgage crisis but be, because of this its undervalued and is starting to bounce rear legs up.
You could also try starbucks (SBUK) which has be heavely hit due to Mcdonalds, but is on the rebound at a tremendously cheap price!!
I have see a usefull website for stock market/Commodities investors- www.onlimoney.com
You can discuss at www.onlimoney.com
hmm, gl... me and my school are playing equal game :), my troop is usually top 3 or 5