Asked to calculate the expected price of the company's stock...

The beta coefficient of Company A's stock is 2, the risk-free interest rate is 5%, and the average return rate of all stocks on the market is 10%.

The company's stock has an expected return of 15%.

Beta coefficient measures the overall volatility of stock returns relative to performance evaluation benchmark returns and is a relative indicator.

The higher the beta, the greater the volatility of the stock relative to the performance evaluation benchmark.

If β is greater than 1, the volatility of the stock is greater than the volatility of the performance evaluation benchmark.

vice versa.

If β is 1, if the market rises by 10%, the stock will rise by 10%; if the market falls by 10%, the stock will fall by 10%.

If β is 1.1, when the market rises by 10%, the stock rises by 11%; when the market falls by 10%, the stock falls by 11%.

If β is 0.9, when the market rises by 10%, the stock rises by 9%; when the market falls by 10%, the stock falls by 9%.

1. Beta coefficient calculation method (Note: Leverage is mainly used to measure non-systematic risk) (1) Beta coefficient of a single asset. The systemic risk of a single asset is measured by the beta coefficient. By taking the entire market as a reference, the risk of a single asset is used.

The rate of return is compared with the average risk-return rate of the entire market, that is: In addition, the β value can also be calculated according to the covariance formula.

Note: Understand the meaning of β value ◆β=1, which means that the risk-return rate of this single asset changes in the same proportion as the average risk-return rate of the market portfolio, and its risk profile is consistent with the risk profile of the market portfolio; ◆β>1, indicating

If the risk-return rate of this single asset is higher than the average risk-return rate of the market portfolio, then the risk of this single asset is greater than the risk of the entire market portfolio; ◆β<1, indicating that the risk-return rate of this single asset is less than the average risk-return rate of the market portfolio

, then the risk of this single asset is less than the risk of the entire market portfolio.

Summary: (1) β value is a measure of systemic risk, (2) there are two ways to calculate β coefficient.

Stock earnings are stock dividends and earnings from stock ownership in excess of the actual purchase price of the stock.

What investors care most about when buying stocks is how much profit they can get.

Specifically, dividends and the appreciation in stock market value.

There are generally three forms of dividends issued by the company: cash dividends, stock dividends, and property dividends.

Generally, most companies pay cash dividends. Those that do not pay cash dividends are mainly companies that are growing rapidly for the purpose of company expansion.

The need to temporarily hold additional funds to accommodate further needs is often accepted by investors.

Since dividends are the nominal income of stocks, and stock prices change frequently, in comparison, stock holders are more concerned about the expected returns brought about by stock price changes than dividends: stock appreciation: it is the appreciation part of the stock market price,

It is determined based on the degree of increase in corporate assets and operating conditions, and is specifically reflected in the income brought by the stock price.

Dividends: Dividends refer to a certain amount of profit that stockholders regularly receive from a joint stock company.

The standard for profit distribution is based on the par capital of the stock.

The principle for dividends issued by listed companies is that after-tax profits can be used to distribute dividends only after necessary deductions are made in accordance with the law.

The specific deduction items and amount ratios depend on the provisions of the law and the company's articles of association.

Dividends: It is another part of income that exceeds dividends. It is generally the income enjoyed by ordinary stocks. Preferred stocks cannot participate in dividend distribution.

Stock return is an indicator that reflects the level of stock returns 1. It reflects the expected return level of investors buying stocks at the current price.

It is the ratio of annual cash dividends to the current market price.

Current dividend yield = (annual cash dividend/current stock price) * 100% 2. Stock investors hold stocks for different periods of time, and the rate of return earned by the stock during the holding period is the holding period rate of return.

Holding period yield = [(sale price - purchase price) / holding period + cash dividend] / purchase price * 100% 3. A company's stock split will inevitably lead to an increase in shares and a decrease in stock price. It is precisely because of the stock price after the stock split

Adjustments must be made, so the holding period return after the stock split also changes.