Introduction to Beta in Corporate Finance finance introduction

by autisticchiaNGMAI



This video shows what beta is in the context of Corporate Finance. Beta is the percentage change in an asset’s return, given a 1% change in the return of the market portfolio (an index such as the S&P 500 is commonly used to proxy for the market portfolio. Beta is important because it measures the amount of systematic risk an asset has. Because unsystematic risk (firm-specific risk) can be diversified away, the systematic risk of an asset is what determines the risk premium demanded by investors for holding the asset. Thus, beta can be used to calculate the cost of a firm’s equity capital (for example, with the Capital Asset Pricing Model).

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Introduction to Beta in Corporate Finance

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36 comments

marilynvco 22/12/2021 - 7:31 Chiều

I wish I had found your videos at the beginning of the semester. You are a phenomenal teacher! Thanks for helping me grasp difficult topics in corporate finance.

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Zainab Ebrahim 22/12/2021 - 7:31 Chiều

Nicely and professionally explained! Can't thank you for making it easy to grasp! Bless you

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Srinivas Thotla 22/12/2021 - 7:31 Chiều

do Beta values change every day for stocks?

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Alara Dinc 22/12/2021 - 7:31 Chiều

thank you !!

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Alara Dinc 22/12/2021 - 7:31 Chiều

As always… a great video! Literally got through college be because of you! Thank you 🙏🏼

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Luís Tato 22/12/2021 - 7:31 Chiều

Shocking how incredible you are compared to my professors. Once again YouTube saving my grades 🤷‍♂️

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Ila Jain 22/12/2021 - 7:31 Chiều

Thanku…
Really explained well..

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Togan Kılıç 22/12/2021 - 7:31 Chiều

You've helped so much!

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Togan Kılıç 22/12/2021 - 7:31 Chiều

I feel I can learn anything from you!

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Shawn Afshar 22/12/2021 - 7:31 Chiều

We need more videos !!!!

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Ariunbat Tsagaantsooj 22/12/2021 - 7:31 Chiều

Greetings from Austria. I have my final exam in corporate finance in few hours. Your videos helped me alot. Just wanna say thank you very much!

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A M 22/12/2021 - 7:31 Chiều

crying while watching your lectures before my finance final. Something I did not understand in two months I learned in 8 minutes. thank god for your videos

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eisle gomez 22/12/2021 - 7:31 Chiều

Where did you get that 30 and 50 percent is that only an estimation?

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eisle gomez 22/12/2021 - 7:31 Chiều

I like ur explanation very clear 😍

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Will Crawford 22/12/2021 - 7:31 Chiều

the quality of these videos and explanations really make me hate my current professor, and the fact that I spent 3 grand just to have to come back to YouTube to teach myself.

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Jessica O'Sullivan 22/12/2021 - 7:31 Chiều

This video was so helpful. Thank you so much! 🙂

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Ponisa Seaside 22/12/2021 - 7:31 Chiều

Legend !!

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Yonatan Ofek 22/12/2021 - 7:31 Chiều

hey that's some pretty nifty percentage arithmetics around 6:05! I'm 4 years through an engineering degree and I'm intrigued! How'd you do that? 😀

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Sophie 22/12/2021 - 7:31 Chiều

The example was easy to follow but if I wanted to invest in a company where would I find the good and bad economy percentage?

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Fardeenul Islam 22/12/2021 - 7:31 Chiều

You made my understanding of Finance and Accounting, so much easier! THANKS ALOT!

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Theelicitor 22/12/2021 - 7:31 Chiều

Awesomely explained. Got it first time round. You're gifted!!! As thank you for your time and effort I subscribed and gave a thumbs up 🙂

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Lilly Lin 22/12/2021 - 7:31 Chiều

Very helpful, thank you very much.

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Amanda Partlow 22/12/2021 - 7:31 Chiều

Thank you this was so helpful!! I hope I ace my exam

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João Matos 22/12/2021 - 7:31 Chiều

Hello. Thanks for the video. I have 1 question. In my investment research I found 3 ways to calculate Beta and yours is the 4th. The ways I found where using a line regression (in Excel for example), the 2nd was using the formula beta=Covar(Returns, Market returns) / Var(Market returns) and the 3rd was beta=Covar(Returns – Rfr, Market returns – Rfr) / Var(Market returns – Rf). And now with yours counts 4. Which one is correct or which one should be used when? Thanks in advance. JM

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Injune Jo 22/12/2021 - 7:31 Chiều

never commented on anything but YOU ARE THE BEST! my prof explained this for 3 courses i didn't get that but i just got it in 10 mins….

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Linh Nguyen Thi 22/12/2021 - 7:31 Chiều

I had just finished the final exam, and all of your teaching videos have helped me a lot. I just wana say: Thank you so much! and again

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Esha Kochhar 22/12/2021 - 7:31 Chiều

Your explanation is very lucid. It shows that you have thorough understanding of the topic you explain. Many thanks for your videos!

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1Baltizar 22/12/2021 - 7:31 Chiều

Thank you so much! Your approach to teaching is what I have been searching for.

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Neha Hooda 22/12/2021 - 7:31 Chiều

Wonderful

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Moto ciklista 22/12/2021 - 7:31 Chiều

Well done sir. This is the way people should teach. I got it on the first take.

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Crowell Crowell 22/12/2021 - 7:31 Chiều

You should teach professors who teach the art of teaching.

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Elaine Zhang 22/12/2021 - 7:31 Chiều

THANK YOU FOR SAVING MY LIFE BEFORE FINAL

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mm22 sapphire 22/12/2021 - 7:31 Chiều

i love you man

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Arvinder Kaur 22/12/2021 - 7:31 Chiều

very well explained…but how to get directed to next following video after this i don't get it… please let me know…if anyone know's it..ill appreciate it.

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Blackbanban le crepe 22/12/2021 - 7:31 Chiều

Thank you so much!! I appreciate your work

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Manikyalarao Parsa 22/12/2021 - 7:31 Chiều

thank you sir

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