Topic: Call for help from anyone who knows accounting/finance

[Clark Kent]

Let's say I have three securities as such:

          Standard deviation    Beta
Security X     .35                 1.45
Security Y     .28                 1.06
Security Z     .44                 1.22

Which will have the greatest total risk?
Which will have the greatest systematic risk?
And which will have the greatest expected return?

I really need the why of this more than the what.  i.e.  why would security __ have a greater expected return than the others in quantifiable terms?  If anyone can help it would be greatly appreciated.

[Clark Kent]

Does no one know how to help me out.   

[Iceman]

Try asking Jack, via PM.

[Just plain old Punisher]

I'll loan you my evil accountant for 1 buck and a pack of tic-tacs.

[E_Look]

Make 'em the lime Tic Tacs and you've got a deal.

[Clark Kent]

It's alright, just send some monumental bewbies my way.

[Jack Morris]

Sorry Clark, been away for a couple of days.

Could you please be more specific as to what securities you are talking about? I invest in the market, but even CDs and low paying items have what's called a percentage yield of your investment. I've never hear of variation and beta.

[Clark Kent]

Sorry Clark, been away for a couple of days.

Could you please be more specific as to what securities you are talking about? I invest in the market, but even CDs and low paying items have what's called a percentage yield of your investment. I've never hear of variation and beta.

This was a purely hypothetical question, and this was the only info I had on it.  Sorry, no specific securities to tell you about.

[Jack Morris]

I'll show you FRO

http://finance.yahoo.com/q?s=FRO

Ok, I buy FRO at 42.75 a share. It has a dividend yield of 21.79, meanbing I'm beating the market and bank bad. BUT, if you look at history, the share price stays between 40 to 65 for example, sometimes you get killler dividends, sometimes not, you also have to look at a stock's appreciation potential. FRO is a stable stock, but I like dividends.

Now let's look at VLO

Can we say crap div yield? But wait! Look at the year to year history!

http://finance.yahoo.com/q/bc?s=VLO&t=5y

Hmmmm, 11 bucks a share near beginning of 03, plus a SPLIT, and now is almost 100 a share! So at that rate of appreciation and a split, screw dividends! Yeah guys and gals, I noticed VLO in summer of 04, and have regretted not buying any back then since because now it's an expensive stock. They are also buying out PremCor thus making Valero Oil THE largest refiner in the U.S.

That my friends is called POWER!

[Jack Morris]

Let us know where you got those formulas Clark, I never learned that stuff in any of my business classes, but then again that was years ago.  I was always taught cash flow, expenses vs income, P/E and dividend yield and stock appreciations (or devaluations) and forward and reverse splits.