Ask your doubts about stock market

[adityam12345]

wat the factors leading to such a poor performance by the sensex ........

[jatinshah]

Originally Posted by adityam12345

Cn sm1 plz explain beta, itz contruction and itz application .....
....... thanks in advance

Beta represents the slope of regression and measures the responsiveness of the security to general market movements. It indicates how extensively the return of the portfolio/security will vary wrt changes in market rate of return.

Theoretically, if the beta is 1.2 and the index gives return of 10%, then the security/portfolio will give 10*1.2 = 12% return.

Value of beta can be arrived in many ways depending on the data you have. I have mentioned couple of frequently used ways to arrive at the beta value:
1. The value of beta can be arrived through CRL or CAPM model
2. The value of beta can arrived at COVARIANCE/VARIANCE (covar/var)

I usually use covar/var of the returns to calculate the value of beta.

[Star86]

hello m doin mba finance.i hav 2mke a project on share mkt emphasisng on d fluctuations frm 20th jan'08.nd i donn hav any idea regardin share mkt coz honestly m least intrstd 2b a part of ths ,bt stil bein a finance stud i thnk itz imp 4me 2learn abt it...so if any1 can plz help me out hw 2knw abt wht exactly happens in dis mkt n hw 2strt upp wth ths project...can mail me at: