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.
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.
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
| 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
| 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
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