Difference between Systematic risk and Beta
This query is : Resolved
Santosh Mahato
(Querist)
01 October 2010
Dear Experts,
Can any one tell me the difference between systematic risk and Beta security?
If beta is also systematic risk then why not we calculate beta when question ask for calculation of systematic risk?
Can any one tell me the difference between systematic risk and Beta security?
If beta is also systematic risk then why not we calculate beta when question ask for calculation of systematic risk?
CA Suraj Lakhotia
(Expert)
01 October 2010
Beta is a measure of Systematic risk. It helps us understand how risky is a particular security.
The following write up may be useful
https://en.wikipedia.org/wiki/Modern_portfolio_theory
The following write up may be useful
https://en.wikipedia.org/wiki/Modern_portfolio_theory
Santosh Mahato
(Querist)
01 October 2010
Theoritically i know it but try to reply my second question it is based on CA final practial question.
CA Suraj Lakhotia
(Expert)
02 October 2010
Beta itself is not systematic risk. It measures the sensitivity of a stock with reference to market. With the help of beta you can find the systematic risk. Risk is represented in the some units whereas beta is absolute.
08 October 2010
Hi Santosh,
To the best of my knowledge, both Beta and systematic risk are same.
Can you type the whole question, so that I can help assist.
To the best of my knowledge, both Beta and systematic risk are same.
Can you type the whole question, so that I can help assist.
08 October 2010
Suraj, Beta measures the systematic risk (risk of the security in relation to the market)
CA Suraj Lakhotia
(Expert)
08 October 2010
The measure (beta) cannot be the risk itself.
08 October 2010
Agreed that beta measures only the systematic risk. The risk of the asset in relation to the whole market.
Standard deviation can be used as a stand alone risk measure of the asset.
Standard deviation can be used as a stand alone risk measure of the asset.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst credit note by supplier
- Reward for festival
- 18% Rent a cab
- Movement of goods by packers and movers - type of sale - Reg.
- Missed uploading GST Invoice
- RCM and same line
- ARCA LOGIN
- Appointment of Auditor By Form ADT-1
- Accounting Treatment of Civil work to install PORTA Cabin for office use
- TDS Return Statement Status
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
