what is this means

wappula · 1 what is this means Sun Jun 12, 2011 3:15 pm

wappula

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Beta Values Against ASI (As of First Quarter of year 2011) 1.24
Beta Values Against MPI (As of First Quarter of year 2011 2.00

i am new pls explain..

Slstock · 2 Re: what is this means Sun Jun 12, 2011 3:37 pm

Slstock

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wappula wrote:Beta Values Against ASI (As of First Quarter of year 2011) 1.24

Beta Values Against MPI (As of First Quarter of year 2011 2.00

i am new pls explain..

Below article should give a good clarification
http://blog.nobletrading.com/2008/06/what-is-beta-value-of-stocks.html

nkalansu · 3 Re: what is this means Sun Jun 12, 2011 4:23 pm

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Beta value 1.24 means when the ASI goes up by 100% your stock goes up by 124% and vice versa

Beta value 2.00 means when MPI goes up by 100% your stock will go up by 200% and vice versa

Stocks with beta values above 1.0 are aggressive stocks. Stocks which are below 1.0 are defensive stocks. Say your stock has 0.65 beta value. Then when market goes up by 100% your stock will go up by 65% and when market goes down by 100% your stock will come down only by 65%.

Check topics about Capital asset pricing model (CAPM) to get an idea about beta value.

Last edited by nkalansu on Sun Jun 12, 2011 4:31 pm; edited 1 time in total

Aamiable · 4 Re: what is this means Sun Jun 12, 2011 4:27 pm

Aamiable

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Guar maitains a 2.97 beta value

Slstock · 5 Re: what is this means Sun Jun 12, 2011 4:52 pm

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nkalansu wrote:Beta value 1.24 means when the ASI goes up by 100% your stock goes up by 124% and vice versa

Beta value 2.00 means when MPI goes up by 100% your stock will go up by 200% and vice versa

Stocks with beta values above 1.0 are aggressive stocks. Stocks which are below 1.0 are defensive stocks. Say your stock has 0.65 beta value. Then when market goes up by 100% your stock will go up by 65% and when market goes down by 100% your stock will come down only by 65%.

Check topics about Capital asset pricing model (CAPM) to get an idea about beta value.

Just to clarify , some Blue Chips can fall into below 1 category. It doesn't mean they are bad. The previous article I posted will clarify it.

wappula · 6 Re: what is this means Sun Jun 12, 2011 5:02 pm

wappula

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slstock wrote:

wappula wrote:Beta Values Against ASI (As of First Quarter of year 2011) 1.24

Beta Values Against MPI (As of First Quarter of year 2011 2.00

i am new pls explain..

Below article should give a good clarification
http://blog.nobletrading.com/2008/06/what-is-beta-value-of-stocks.html

thank you mr. slstock very helpful for me i give +rep for you.

wappula · 7 Re: what is this means Sun Jun 12, 2011 5:05 pm

wappula

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nkalansu wrote:Beta value 1.24 means when the ASI goes up by 100% your stock goes up by 124% and vice versa

Beta value 2.00 means when MPI goes up by 100% your stock will go up by 200% and vice versa

Stocks with beta values above 1.0 are aggressive stocks. Stocks which are below 1.0 are defensive stocks. Say your stock has 0.65 beta value. Then when market goes up by 100% your stock will go up by 65% and when market goes down by 100% your stock will come down only by 65%.

Check topics about Capital asset pricing model (CAPM) to get an idea about beta value.

your 1st comment very helpful to me +rep to you, thank you again.