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Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2010 sir whts the difference between DUTY in indirect tax n TAX in direct tax r these words i.e.duty n tax more or less same y v used different words n last wht is BETA factor.i m waitin 4 reply

Taranjit Singh

Taranjit Singh (Expert)
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09 April 2010 Tariff is a duty or tax that is imposed on the exports and the imports of the country. If a government imposes tariff, they can earn revenue out of it. It is an income for the government. However, tariff restricts international trade and foreign exports and imports

Taranjit Singh

Taranjit Singh (Expert)
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09 April 2010 The beta of an investment is a relative measure of the systematic risk of an investment. In other words it measures the specific risk of the company's shares relative to the market as a whole. In general, the sign of the beta (+/-) indicates whether, on average, the investment's returns move with the market or in the opposite direction to the market. The scale or value of the beta indicates the relative volatility of the particular stock.

A beta of +0.25 for instance, would indicate that on average, the investment's returns move one quarter as much as the markets do in the same direction. If the market rose by 10%, the investment would be expected to rise by 2.5% but on the other hand if the market fell by 10% the investment would be expected to fall by only 2.5%. A beta of -0.1 would indicate that on average, the investment's returns move one tenth as much as the market's do, but in the opposite direction. If the market rose by 10%, the investment would be expected to fall by 1%. Hence we can summarise a number of situations:

If Beta > 1 this means that the investment's returns will move, on average, in the same direction as the market's returns, but to a greater extent.

If Beta = 1 this means that the investment's returns will move, on average, in the same direction as the market's returns, and to the same extent.

If 0 -1, to the same extent if Beta = -1, and to a greater extent if Beta < -1. In practice it is rare to find negative beta stocks since they go against the trend of the market. One possible sector that could consist of negative beta stocks is the gold industry that tends to go against the trend shown by equity markets.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2010 thanks a lot sir

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