beta principle of trading

  1. S

    How to Exploit Beta of a stock to trade in arbritrage principle?

    Beta of a stock is often defined as the sensitivity of a stock with respect to the market or Index. In other words the beta of a stock is 1.5 with respect to the market or index means each 1% raise or fall in the index the stock will raise or fall by 1.5 %. Now the question is whether this beta...