![]() ![]() On one hand, it can be seen that Levered Beta measures the market risk that the company is exposed to. Depending on the capital structure of the company, there are two broad categories of beta: levered beta and unlevered beta. The CAPM model signifies and describes the existing relationship between systematic risk as well as expected return for assets. The main usage of Debt Beta is under Capital Asset Pricing Model. Furthermore, it encapsulates the systematic risk of an underlying security or portfolio. As a matter of fact, Beta is defined as a measure of volatility that a business faces with respect to other factors. Beta is considered to be one of the most important concepts in business finance. Business Finance involves a number of different metrics.
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