Beta

[sunandaC]

Beta measures the extent to which the returns fluctuate as compared to the returns of the market


which is represented by a market Index.


It measure the sensitivity of the scrip vis-à-vis Index movement.

e.g – Beta of Portfolio is 0.5. Nifty rises by 2%, Portfolio value changes by 1%


Portfolio value = Beta * Return on Index

0.5 * 2 = 1%

 

[rosemarry2]

Beta measures the extent to which the returns fluctuate as compared to the returns of the market


which is represented by a market Index.


It measure the sensitivity of the scrip vis-à-vis Index movement.

e.g – Beta of Portfolio is 0.5. Nifty rises by 2%, Portfolio value changes by 1%


Portfolio value = Beta * Return on Index

0.5 * 2 = 1%

Hey buddy,

Please check attachment for Accounting Measurement and Beta Risk Measures, so please download and check it.