Beta is critiqued on the basis that it relies on historical data to predict future risks, fails to consider market changes, and presumes a consistent risk-reward relationship.
Explanation:
The Capital Asset Pricing Model (CAPM) uses beta to measure the volatility of an asset in relation to the market. However, there are several criticisms of using beta. First, beta assumes that historical volatility predicts future risk, which may not always be accurate as past performance is not always indicative of future results. Second, beta does not account for changing market conditions or structural changes within a firm that may affect its risk profile. Third, it presumes that the risk-reward relationship is linear and consistent, which might not hold in real-world scenarios where asset returns can behave in a more complex manner.
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To apply the techniques of process management, processes must be _____.
Tennis rackets can be purchased for $60 each from an outside vendor. it costs the manufacturer $80 a piece to produce them, of which 30% is unavoidab
What do physical anthropologists call the taxonomic group that includes humans and humanlike ancestors, excluding living nonhuman primates?
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Bart is ready to look for a site for his new business. to help him in his search he should:
Bart should consult a small business development office where he can have the technical assistance in searching for desired site for his business as well as other technical issues can be resolved. He can also use site selection software to personally make sure the right kind of features and choices for his site.
If the total warehousing cost for the year amounts to $450,000, and 40 percent of the warehousing activity is associated with finished goods and 60 percent with direct materials, how much of the cost would be charged as a product cost?
a. $270,000
An example of global outsourcing is seen when gap, inc uses low-cost caribbean labor to cheaply produce its clothing, and then finishes off and sells its clothing in the united states.
Global outsourcing is when companies seek cost savings by hiring firms abroad, often to access lower-wage labor markets, demonstrated by Gap, Inc.'s use of Caribbean labor. While cost-efficient for companies, it leads to job losses and poor working conditions in many cases. The garment industry, particularly in regions like Quebec, is a clear example of the drastic shifts and challenges posed by global outsourcing.
Global Outsourcing in Business
Global outsourcing refers to the practice where a company in a developed country hires an outside firm, which can be located abroad, to perform tasks that were previously done internally. This process is driven by the search for cost savings, often taking advantage of lower labor costs in other countries. The example of Gap, Inc. using low-cost Caribbean labor to produce clothing, which is then sold in the United States, showcases this business strategy. Global outsourcing is linked to offshoring, where a company physically moves its operations overseas to capitalize on cheaper labor markets.
Outsourcing became significantly prevalent with globalization and the establishment of trade agreements like the North American Free Trade Agreement (NAFTA), enabling companies to save costs by manufacturing in countries like Mexico and still sell their goods in their home markets like the U.S. Despite its financial benefits to companies, outsourcing has led to various issues like the loss of jobs in developed countries, the rise of sweatshops with deplorable working conditions, and wage exploitation in developing countries.
The garment industry is a telling example of the impact of global outsourcing. In the past, regions like Quebec in Canada were the hub for garment manufacturing. However, the entry of low-cost labor from developing countries has virtually eliminated these local industries, compelling workers in developed nations to find alternative employment or retrain for different sectors of the economy.
what are the five main columns of a journal?
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Kelli is a software engineer for an electronics firm. she reports to the manager of software engineering but also works on a new product development team and reports to the team leader in that capacity. based on this information, it would appear that kelli's firm has a _______ structure.