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