1.

I Hope You Are Familiar With Beta. Will You Throw Some Light On How You Will Proceed To Calculate The Beta?

Answer»

Plot the index in one COLUMN and relevant stock price in other column. Say the data is PLOTTED for one week basis. Then calculate % change in the two parameters and plot the data in the NEXT two columns. Beta can be calculated by dividing %CHANGES in index by % changes in the stock prices. You can then de-lever the beta to get another beta that can be re-levered in SUBSEQUENT calculations.

Plot the index in one column and relevant stock price in other column. Say the data is plotted for one week basis. Then calculate % change in the two parameters and plot the data in the next two columns. Beta can be calculated by dividing %changes in index by % changes in the stock prices. You can then de-lever the beta to get another beta that can be re-levered in subsequent calculations.



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