banner_ad

Sfm-three stock covariance matrix

Final 1264 views 20 replies

Hi experts

In portfolio chapter, i am confused with beta calculations as in they have taken simple average of beta whereas weighted avg. should be used.

Pls. explain why they have taken just simple avg. of beta?

Thanks

 

 

See my first reply on page 2.

There is no logic for this. But weighted average beta is appropriate.

Ok this mean i can use weighted beta only in exams na Thanks again sir!
@ gaurav... u can use weighted beta in exams provided u state it in assumption part

Yes, definitely. If in some of solved problems in PM you will find that average beta is used but you can & should used weighted average beta. There is no reason your answer has to 'match' that of ICAI as long as you have done it the right way.

@ Ms. Jyotsna- Thanks alot!

@ Mr. Sunil- Yes, PM has solved few sums by taking simple & weighted avg as well this was the reason for confusion.....anyways Thanks a ton sir for your valuable time giving.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details