Please solve my problem:
Historically, When the market return changed by 10% the return on the stock of Arihant ltd changed by 16%. If the variance of market is 257.81, then calculate the systematic risk of Arihant Ltd.
3 Replies
Minu Sharma
(Artcle)
(286 Points)
Replied 03 May 2016
Beta of Stock = Change in Stock return / Change in Market return
= 16/10 = 1.6
Systematic risk of Stock = Market variance X (Beta Stock)^2
= 257.81 X (1.6)^2
= 660
Santosh Mahato
(CA student)
(207 Points)
Replied 03 May 2016
| Originally posted by : Minu Sharma | ||
 |
Beta of Stock = Change in Stock return / Change in Market return = 16/10 = 1.6 Systematic risk of Stock = Market variance X (Beta Stock)^2 = 257.81 X (1.6)^2 = 660 |
 |
Agree with Minu
Mahi Fatima
(Student)
(54 Points)
Replied 04 May 2016
| Originally posted by : Minu Sharma | ||
|
Beta of Stock = Change in Stock return / Change in Market return = 16/10 = 1.6 Systematic risk of Stock = Market variance X (Beta Stock)^2 = 257.81 X (1.6)^2 = 660 |
|
Great! I am agreed with Minu
Recent Topics
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
Related Threads
CAclubindia
