Respuesta :
If we take into account these two resources:
Asset Expected Return Beta
X 5.8% 0.8
Y 14.2% 1.8
The cost of Asset Y will increase while the cost of Asset X will decrease.
When a security reacts to market fluctuations, its returns are effectively described by beta. The beta of a security is determined by multiplying the covariance of the security's returns by the market returns during a certain period by the market returns' variance.
Asset beta is used to calculate a security's risk minus the amount of debt owed by the business. When a business or an investor wishes to gauge how well a company is performing in comparison to the market without taking debt into account, asset beta is the best option.
The relationship between expected return for assets, particularly stocks, and systematic risk, or the general dangers of investing, is described by the Capital Asset Pricing Model (CAPM).
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