What is Beta?
Answers were Sorted based on User's Feedback
It is a tool used to measure the systematic risk of the
securities.
| Is This Answer Correct ? | 17 Yes | 1 No |
Answer / ae
It measures the correlation between a particular stock and
the market portfolio.
| Is This Answer Correct ? | 11 Yes | 0 No |
Answer / vijesh
Beta is referred to as financial elasticity or correlated
relative volatility, and can be referred to as a measure of
the asset's sensitivity of the asset's returns to market
returns, its non-diversifiable risk, its systematic risk or
market risk. On an individual asset level, measuring beta
can give clues to volatility and liquidity in the
marketplace. On a portfolio level, measuring beta is
thought to separate a manager's skill from his or her
willingness to take risk.
The beta movement should be distinguished from the actual
returns of the stocks. For example, a sector may be
performing well and may have good prospects, but the fact
that its movement does not correlate well with the broader
market index may decrease its beta. However, it should not
be taken as a reflection on the overall attractiveness or
the loss of it for the sector, or stock as the case may be.
Beta is a measure of risk and not to be confused with the
attractiveness of the investment
| Is This Answer Correct ? | 6 Yes | 0 No |
Answer / pooja
measures the systematic risk of a single instrument or for
entire portfolio and measures the sensitivity of an
instrument or portfolio to broad market movements.
| Is This Answer Correct ? | 6 Yes | 1 No |
Answer / shirin
beta measure risk of ur portfolio with market(benchmark).if
beta is 1.25 means if market move or rise by 10percent ur
stock will rise by 12.5%.
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / nitya
it measures the risk associated with individual portfolio
in relation to the market portfolio.
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / rohitash sharma
Beta tells the correlation between return on stock or
portfolio with the return of financial market as a whole.
An assat with 0 beta means there is no correlation of the
assat with the financial market ie; assat is independent &
if the beta is 1 ie;there is a positive relation between
the assat and the financial market.
rohitash.shrm@gmail.com
| Is This Answer Correct ? | 4 Yes | 1 No |
Beta tells the correlation between return on stock or
portfolio with the return of financial market as a whole.
An asset with 0 beta means there is no correlation of the
asset with the financial market ie; asset is independent &
if the beta is 1 ie;there is a positive relation between
the asset and the financial market.
rohitash.shrm@gmail.com
| Is This Answer Correct ? | 4 Yes | 1 No |
Answer / sameer jangra
A measurement of the movement of the price of a particular
stock compared with the movement of the market as a whole
during the same period.
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / vibha
beta is thwe systematic tolll to tell about the sysetmatic
risk of the security and is also tell aboutthe risk and
return of security
| Is This Answer Correct ? | 0 Yes | 0 No |
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