Beta measures how responsive a stock's price is to changes in the overall stock market. It is calculated by comparing the stock's returns to a market index, such as the Nifty. A beta above 1 means the stock is more volatile than the market, while a beta below 1 means it is less volatile. The beta of Axis Bank was calculated to be 1.3 based on its price movements compared to the Nifty over the past two months, meaning its price changes about 30% more than the market. The reliability of using the Nifty to predict Axis Bank's price was determined to be 48.5% based on the R-squared calculation.
20 years of VIX - Fear, Greed and Traditional Asset Classesamadei77
Using 20 years of data, I evaluate the impact of VIX not just on equities but other traditional asset classes. I find that many empirical facts are not supported by classical finance models and propose alternative to improve the investment process.
Financial Markets Signal Detection with Bayesian Networks - Phd DREAMT - Work...Alessandro Greppi
In order to model and explain the dynamics and the signals of the market, financial operators should take into account different kind and source of information.
Unfortunately, standard tools are not always able to summarize in a signal the big amount of information available. We propose to use Bayesian Networks as a quantitative financial tool for this aim. By exploiting the network, we can combine
in the model, both market variables and sentiment ones. Bayesian Networks can be used to show the relationship among the variables belonging to different areas, and to identify in a mouse-click time the configuration that provide an operative signal. An application to the analysis of S&P 500 in the periods 1994-2003 and 2004-2015
is presented.
20 years of VIX - Fear, Greed and Traditional Asset Classesamadei77
Using 20 years of data, I evaluate the impact of VIX not just on equities but other traditional asset classes. I find that many empirical facts are not supported by classical finance models and propose alternative to improve the investment process.
Financial Markets Signal Detection with Bayesian Networks - Phd DREAMT - Work...Alessandro Greppi
In order to model and explain the dynamics and the signals of the market, financial operators should take into account different kind and source of information.
Unfortunately, standard tools are not always able to summarize in a signal the big amount of information available. We propose to use Bayesian Networks as a quantitative financial tool for this aim. By exploiting the network, we can combine
in the model, both market variables and sentiment ones. Bayesian Networks can be used to show the relationship among the variables belonging to different areas, and to identify in a mouse-click time the configuration that provide an operative signal. An application to the analysis of S&P 500 in the periods 1994-2003 and 2004-2015
is presented.
Segunda clase de fundamentos de electrónica, Robert Martinez y Elkin Navarro, para el grado octavo en la Institución Educativa San José No. 1 de Magangué - Bolívar.
Primera clase de fundamentos de electrónica, Robert Martinez y Elkin Navarro, para el grado octavo en la institución educativa San José No. 1 de Magangué - Bolívar.
7 Clase 2 pp - Comunicación, Comunicación en humanos y Teoría de la información.Elkin J. Navarro
Segunda clase sobre Comunicación, Elementos de la comunicación, tipos de comunicación, comunicación humana, lenguaje y teoría de la información. Además de las preguntas que conlleva cada tema.
ASSESSMENT CASE PAPER ANALYSIS / TUTORIALOUTLET DOT COMjorge0048
A report broken down into the following sections:
Summary results and recommendations—up front, concise, and to the point.
Answers to the 6 questions asked—devote a paragraph to each, with individual headings
QNBFS Daily Technical Trader - Qatar for October 15, 2017QNB Group
The Index reached an intra-day resistance any may correct. That being said, if the Index does not break below the recent low, it may correct for another bullish movement upwards.
QNBFS Daily Technical Trader - Qatar for November 29, 2017QNB Group
The Index has created an intra-day range and we updated our first expected resistance at 7,820. Our first support, however, remains around the 7,700 level.
QNBFS Daily Technical Trader - Qatar for January 4, 2018QNB Group
The market closed flat but we are still bullish on the Index. As we have mentioned in previous reports, maintaining altitude above the 8,200 level is crucial to the short term direction of the Index.
Segunda clase de fundamentos de electrónica, Robert Martinez y Elkin Navarro, para el grado octavo en la Institución Educativa San José No. 1 de Magangué - Bolívar.
Primera clase de fundamentos de electrónica, Robert Martinez y Elkin Navarro, para el grado octavo en la institución educativa San José No. 1 de Magangué - Bolívar.
7 Clase 2 pp - Comunicación, Comunicación en humanos y Teoría de la información.Elkin J. Navarro
Segunda clase sobre Comunicación, Elementos de la comunicación, tipos de comunicación, comunicación humana, lenguaje y teoría de la información. Además de las preguntas que conlleva cada tema.
ASSESSMENT CASE PAPER ANALYSIS / TUTORIALOUTLET DOT COMjorge0048
A report broken down into the following sections:
Summary results and recommendations—up front, concise, and to the point.
Answers to the 6 questions asked—devote a paragraph to each, with individual headings
QNBFS Daily Technical Trader - Qatar for October 15, 2017QNB Group
The Index reached an intra-day resistance any may correct. That being said, if the Index does not break below the recent low, it may correct for another bullish movement upwards.
QNBFS Daily Technical Trader - Qatar for November 29, 2017QNB Group
The Index has created an intra-day range and we updated our first expected resistance at 7,820. Our first support, however, remains around the 7,700 level.
QNBFS Daily Technical Trader - Qatar for January 4, 2018QNB Group
The market closed flat but we are still bullish on the Index. As we have mentioned in previous reports, maintaining altitude above the 8,200 level is crucial to the short term direction of the Index.
Investing Concept Of Risk And Return PowerPoint Presentation Slides SlideTeam
Every organization needs to adapt to the ever-changing business environment. Sensing this need, we have come up with these content-ready change management PowerPoint presentation slides. These change management PPT templates will help you deal with any kind of an organizational change. Be it with people, goals or processes. The business solutions incorporated here will help you identify the organizational structure, create vision for change, implement strategies, identify resistance and risk, manage cost of change, get feedback and evaluation, and much more. With the help of various change management tools and techniques illustrated in this presentation design, you can achieve the desired business outcomes. This business transition PowerPoint design also covers certain related topics such as change model, transformation strategy, change readiness, change control, project management and business process. By implementing the change control methods mentioned in the presentation, you will be able to have a smooth transition in an organization. So, without waiting much, download our extensively researched change management framework presentation. With our Change Management Presentation slides, understand the need for change and plan to go through it without any hassles.
QNBFS Daily Technical Trader - Qatar for October 03, 2017QNB Group
We reiterate the notion that the Index remains around a critical intraday level of 8,300 and should sustain it. Otherwise, we may see it moving towards the 8,200 level.
Flexible Equity Euro Long-Short (Market Neutral) strategy_End of Oct. '17Giuseppe Piazzolla
This is an example of a monthly factsheet I build to track performance and risk data of a mandate I call 'Flexible Equity - Euro Long Short Market Neutral strategy'.
Actually, it is my track record in market neutral format.
QNBFS Daily Technical Trader - Qatar for October 11, 2017QNB Group
The Index remains in a relief rally on low volumes; the RSI positively diverging against the Index. As a result, this bounce could continue against the trend.
QNBFS Daily Technical Trader - Qatar for October 11, 2017QNB Group
The Index remains in a relief rally on low volumes; the RSI positively diverging against the Index. As a result, this bounce could continue against the trend.
Multi Act India's review of SENSEX 2015. We affirm that the market should consolidate around 27,500 which is the mid-band of our valuation range and also close to the “end of year” estimate of our trend (27,400) of the Sensex quantitative analysis.
Website - http://multi-act.com/
Contact Us - http://multi-act.com/contact
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
1. 1.1 About the topic
What is Beta ?
Beta measures the responsiveness of a stock's price to changes in the overall stock market.
On comparison of the benchmark index for e.g. NSE Nifty to a particular stock returns, a
pattern develops that shows the stock's openness to the market risk. This helps the investor
to decide whether he wants to go for the riskier stock that is highly correlated with the
market (beta above 1), or with a less volatile one (beta below 1).
For example, if a stock's beta value is 1.3, it means, theoretically this stock is 30% more
volatile than the market. Beta calculation is done by regression analysis which shows
security's response with that of the market.
By multiplying the beta value of a stock with the expected movement of an index, the
expected change in the value of the stock can be determined. For example, if beta is 1.3
and the market is expected to move up by 10%, then the stock should move up by 13%
(1.3 x 10).
Beta is the key factor used in the Capital Asset Price Model (CAPM) which is a model
that measures the return of a stock. The volatility of the stock and systematic risk can be
judged by calculating beta. A positive beta value indicates that stocks generally move in
the same direction with that of the market and the vice versa. Risk is an important
consideration in holding any portfolio. The risk in holding securities is generally
associated with the possibility that realised returns will be less than the returns expected.
Risks can be classified as Systematic risks and Unsystematic risks.
Unsystematic risks:
These are risks that are unique to a firm or industry. Factors such as management
capability, consumer preferences, labour, etc. contribute to unsystematic risks.
Unsystematic risks are controllable by nature and can be considerably reduced by
sufficiently diversifying one's portfolio.
Systematic risks:
These are risks associated with the economic, political, sociological and other macro-level
changes. They affect the entire market as a whole and cannot be controlled or eliminated
merely by diversifying one's portfolio.
What is Beta?
The degree to which different portfolios are affected by these systematic risks as
compared to the effect on the market as a whole, is different and is measured by Beta. To
2. put it differently, the systematic risks of various securities differ due to their relationships
with the market. The Beta factor describes the movement in a stock's or a portfolio's
returns in relation to that of the market returns. For all practical purposes, the market
returns are measured by the returns on the index (Nifty, Mid-cap etc.), since the index is a
good reflector of the market.
Many investors look for beta of a stock to measure the relative risk attached to it. As we
know and discussed in the article “How to hedge your portfolio using Nifty future?" that
beta (β) is the price sensitivity of an underlying asset with respect to the Index. The beta
calculation evaluates the performance of the historical prices of the equity with respect to
that of Index. This relative performance is further used to measure the risk attached with
the equity in the form of beta.
A β >1 indicates higher relative risk and the β < 1 signifies the lower relative risk.
You can calculate the β of any stock in Excel, provided you have data of historical prices
of the stock in consideration and the Index.
Let us calculate the β of a stock with the help of steps as shown in the following example:
(1) Select the equity and the Index:
The first step is to identify the stock whose beta is to be calculated with respect to the
market Index.
I am taking AXIS Bank Ltd as a stock in consideration and S&P CNX NIFTY as the
Index.
(2) Collect the historical prices of the stock and the Index for a period of time: Now, the
next step is to download the historical prices of both the stock and the Index for same
period of time. Well, the selection of the time period depends on the outlook of the
investor. If he is planning to invest in a stock for long term purposes then he should
collect data for longer duration say a year or two and if he is thinking to sell the stock in a
short time then he can look for data for shorter duration.
3. Well, in this example I am taking last two months data of the historical prices of the stock
AXIS Bank Ltd and last two months data S & P CNX NIFTY, which is shown in the table
below:
(You can find the historical price data in www.nseindia.com)
S.No Date Close price of AXIS Bank Close price of S&P NIFTY
1 10-Apr-15 568.05 8780.35
2 13-Apr-15 566 8834
3 15-Apr-15 550.2 8750.2
4 16-Apr-15 550.8 8706.7
5 17-Apr-15 533.7 8606
6 20-Apr-15 518.25 8448.1
7 21-Apr-15 523.2 8377.75
8 22-Apr-15 540.1 8429.7
9 23-Apr-15 538.2 8398.3
10 24-Apr-15 527.25 8305.25
11 27-Apr-15 524.2 8213.8
12 28-Apr-15 535 8285.6
13 29-Apr-15 551.95 8239.75
14 30-Apr-15 567.8 8181.5
15 04-May-15 568.35 8331.95
16 05-May-15 565.85 8324.8
17 06-May-15 543.3 8097
18 07-May-15 527.35 8057.3
5. (3) Calculate the percentage change in price:
The daily percentage change in prices is calculated both for stock AXIS Bank Ltd and
index S&P CNX NIFTY. This is calculated by current day’s price minus previous day’s
price and then divides the result by previous day’s price.
Percentage change (% change) = [(current day’s price – previous day’s price)/ previous
day’s price] x 100
Calculating the daily percentage change in the table below:
A B C D E F
S.No Date Close Price of AXIS bank % change in AXIS Bank price Close
price of S&P NIFTY % change in NIFTY price
1 10-Apr-15 568.05 8780.35
2 13-Apr-15 566 -0.4% 8834 0.6%
3 15-Apr-15 550.2 -2.8% 8750.2 -0.9%
4 16-Apr-15 550.8 0.1% 8706.7 -0.5%
5 17-Apr-15 533.7 -3.1% 8606 -1.2%
6 20-Apr-15 518.25 -2.9% 8448.1 -1.8%
7 21-Apr-15 523.2 1.0% 8377.75 -0.8%
8 22-Apr-15 540.1 3.2% 8429.7 0.6%
9 23-Apr-15 538.2 -0.4% 8398.3 -0.4%
10 24-Apr-15 527.25 -2.0% 8305.25 -1.1%
11 27-Apr-15 524.2 -0.6% 8213.8 -1.1%
12 28-Apr-15 535 2.1% 8285.6 0.9%
13 29-Apr-15 551.95 3.2% 8239.75 -0.6%
14 30-Apr-15 567.8 2.9% 8181.5 -0.7%
7. 40 08-Jun-15 553.6 0.9% 8044.15 -0.9%
41 09-Jun-15 558.7 0.9% 8022.4 -0.3%
42 10-Jun-15 564.5 1.0% 8124.45 1.3%
43 11-Jun-15 546.75 -3.1% 7965.35 -2.0%
(4) Understand the concept of Variance and Covariance:
Before, we proceed further in calculating the β of AXIS Bank Ltd, it is important to first
understand the concept of variance and co-variance
Variance: It is the measurement of the spread between the numbers in a data. It actually
measures the distance between each number in a data set from the mean of the data set.
Where,
N = total number of data sets
x = price of particular date
µ = mean of N number of data sets
Covariance: It is the degree or the extent by which the returns of two risky assets move
with respect to each other. A positive covariance indicates that the returns of assets move
together while the negative covariance means that the returns move in the opposite
direction.
8. (5) The calculation of beta:
It is the covariance of returns of AXIS Bank Ltd and the returns of S&P CNX NIFTY (for
the period April 10, 2015 to June 11, 2015) divided by the variance of the returns of the
S&P CNX NIFTY for the similar period.
Beta of AXIS Bank Ltd = COVARIANCE of returns of AXIS Bank Ltd and the returns of
S&P CNX NIFTY/ VARIANCE of the returns of the S&P CNX NIFTY
You can get the results by using following formula in excel:
Beta of AXIS Bank Ltd = COVAR (D2:D43, F2:F43) / VAR (F2:F43)
Where D2:D43 is the returns of AXIS Bank Ltd.
F2:F43 shows the returns of S&P CNX NIFTY
Beta of AXIS Bank Ltd = (1.66 x 10-4) / (1.28 x 10-4)
Beta of AXIS Bank Ltd = 1.3
This means that for 1 unit change in the price of the S&P CNX NIFTY the price change in
AXIS Bank will be 1.3 units.
(5) Assess the reliability of risk: Now we will understand that to what extent knowing the
values of S&P CNX NIFTY helps you predict the values of AXIS Bank. This can be
calculated using R- square, here is the formula in excel to calculate it:
9. R- Squared = RSQ (F2:F43, D2:D43)
R- Squared = 0.485 or 48.5%
R2 is 0.485
48.5% of AXIS Bank’s price movement can be explained by the price movements of
benchmark index S&P CNX NIFTY. Therefore, we can say that the price movements of
AXIS Bank is 48.5% correlated to the price movements in S&P CNX NIFTY
Conclusion: Although it is a time consuming exercise but it gives an investor an idea
about the risk of associated with the particular asset. Apart from calculating beta we can
also get to know the extent of correlation in between the equity and the index and hence
let us know the reliability of the risk. The main disadvantage is that the β calculation does
not reflect the recent changes. In the end, we can say that this is a useful tool to assess the
risk element attached to the asset and investor should apply this tool before investing in
any equity.