s Visit the following web site or other websites: : https://finance.yahoo.com/ 1.  Search for the beta of “Carnival Corporation & plc” 2.  In addition, find the beta of 3 different companies within the same industry as Carnival Corporation & plc 3.  Explain to your classmates what beta means and how it can be used for managerial and/or investment decision 4.  Why do you think the beta of Carnival Corporation & plc and those of the 3 companies you found are different from each other? Provide as much information as you can and be specific. Before you respond to Part 2 review the following information on Capital Budgeting Techniques (LINK) —– https://www.youtube.com/watch?v=hfZ6lznPf2U&ab_channel=MichaelNugent To avoid damaging its market value, each company must use the correct discount rate to evaluate its projects. Review and discuss the following: • Compare and contrast the internal rate of return approach to the net present value approach. Which is better? Support your answer with well-reasoned arguments and examples. • Is the ultimate goal of most companies–maximizing the wealth of the owners for whom the firm is being operated–ethical? Why or why not? • Why might ethical companies benefit from a lower cost of capital than less ethical companies? —- https://www.scribd.com/doc/37253036/Capital-Budgeting-Principles-Techniques

Beta is a measure of a stock’s volatility in relation to the overall market. It measures the systematic risk of a stock or portfolio, which is the risk that cannot be diversified away. Beta is calculated by regressing the stock’s returns against the market returns, which are typically represented by a market index such as the S&P 500.

To find the beta of Carnival Corporation & plc, we can search for the stock on finance.yahoo.com or other websites that provide financial information. By searching for Carnival Corporation & plc and viewing its stock quote page, we can find the beta value. The beta value represents how much the stock’s price is expected to move in relation to the overall market. A beta of 1 indicates that the stock is expected to move with the market, while a beta of less than 1 indicates lower volatility and a beta greater than 1 indicates higher volatility.

In addition to finding the beta of Carnival Corporation & plc, we need to find the beta of three other companies within the same industry. This allows us to compare the riskiness of Carnival Corporation & plc to its industry peers. To find the beta of these companies, we can search for their stock symbols or names on finance websites and view their stock quote pages to find the beta value.

Now that we have the beta values for Carnival Corporation & plc and three other companies in the same industry, we can compare and analyze them. The differences in beta values can be attributed to various factors, such as differences in business models, financial leverage, operating risks, market perception, and industry dynamics. For example, a company with a higher beta might have higher financial leverage, indicating more debt and thus more risk. Another company might have a lower beta due to its stable earnings and low debt level, making it less sensitive to market fluctuations.

Beta can be used for managerial and investment decision-making. For managers, beta can help them understand the risk associated with the company’s stock and guide their decisions on capital structure, risk management, and strategic planning. For investors, beta can help them assess the risk and potential return of a stock or portfolio. A high-beta stock may provide higher returns during bullish market conditions but may also experience bigger declines during market downturns. A low-beta stock may provide relatively stable returns but may lag behind during market upswings. By considering the beta, investors can align their risk tolerance and investment objectives with the risk profile of the stock.

In conclusion, beta is a measure of a stock’s volatility in relation to the market. It can be used for managerial decisions regarding capital structure and risk management, as well as for investment decisions to assess the risk and potential return of a stock or portfolio. The differences in beta values among companies within the same industry can be attributed to factors such as business models, financial leverage, operating risks, market perception, and industry dynamics.

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