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Dear Sir/ Madam,
I am Prof. Rahul K Kavishwar, teaching at KLS IMER, Belgaum. I want some clarification on following points.
1) Buy back of Preference shares:
Whether Buy back of Preference share is allowed in Indian corporate? If yes I am not getting any company or corporate gone for buy back of Preference share.
2) Beta calculations
Why there is difference between
i) Beta calculated by stock exchange and beta calculated by individual.
For Example: If I take stock prices RIL from 1/1/2006 to 31/12/2006, beta of RIL is 1.10, but in stock market it is showing as .90 beta
Why there is difference in the beta? What is the reason for the same sir?
In anticipation of positive feedback
With warm personal regards
Prof. Rahul K Kavishwar
KLS's Institute of Management Education & Research
R.S. No 77, Vadagon road,
Adarsh Nagar, Hindwadi
Belgaum - 590011
Karnataka
India
Phone:
Mobile: 9448212035
Office: 0831-2405511
Res: 0831-2454082
Fax: 0831-2481745
Website: www.klsimer.edu

From India , Bangalore
1) The risk of any individual share can be measured as the volatility of a share relative to the market as a whole. This ratio is known as the beta of a share.
2) Beta relates to market risks, or, more specifically, the relative behaviour of stocks. Beta is therefore a measure of how sensitive the price of a specific stock is to changes in the price of the stock market.
In short we can say that it is market related risk which is called as systematic risk.
3)The same beta coefficient can be calculated with the following computationally efficient equation.
B = N Σ XY – Σ X Σ Y / N Σ X2 - (Σ X) 2
X = index points
Y = returns
N = no of days
If beta is Zero
No risk
If beta is more than one
It is more sensitive to the market or systematic risk.
If the beta is one
Same risk profile as the market as a whole.
If the beta is less than one
It is not as sensitive to systematic or market risk.
I hope you cleare the concept
With regards
Rahul K Kavishwar

From India , Bangalore
Hi sir,
Now i am know about beta calculation. sir if possible can u please send me the information.
SIr instead of using the lenghthy formula we can calculate like this also
Beta = return of share/return of market.
As you said "The risk of any individual share can be measured as the volatility of a share relative to the market as a whole. This ratio is known as the beta of a share".
Hope i am right.

From India , Bangalore
No, you cont use that formula for calcuation of beta. If you want any clarification on beta please refere Investment analysis and portfolio Management written by P Chandra, TMH pulication
From India , Bangalore
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