what is Beta?
BETA is a measure of perfomance of a particular share or class of shares in relation to the general movement of the market. If the share has a beta of 1 its rise and fall corrensponds exactly with the market.With a beta of 2, its rise or fall means is double ie. when market rises by 10% it rises by 20% and when market falls by 20%
High Beta shares- Advantages:-High return within limited period of time if the market conditions are too good
High volatility leads to high return on intraday trading
Bull market leads advances high beta shares more than index
High beta shares- Dis Advantages:-
High risk If the market conditions are very bad stock price plunged more than what a market react.
If the Bear market share price completely plunged more than index movement
BETA is a measure of perfomance of a particular share or class of shares in relation to the general movement of the market. If the share has a beta of 1 its rise and fall corrensponds exactly with the market.With a beta of 2, its rise or fall means is double ie. when market rises by 10% it rises by 20% and when market falls by 20%
High Beta shares- Advantages:-High return within limited period of time if the market conditions are too good
High volatility leads to high return on intraday trading
Bull market leads advances high beta shares more than index
High beta shares- Dis Advantages:-
High risk If the market conditions are very bad stock price plunged more than what a market react.
If the Bear market share price completely plunged more than index movement