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Estimating Beta (¦Â) Values of Stocks in the Creation of Diversified Portfolio - A Detailed Study

Author

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  • Syed Mohammad Faisal
  • Ahmad Khalid Khan
  • Omar Abdullah Al Aboud

Abstract

In this paper researchers investigate thorough analysis of stocks from different sectors in order to estimate beta values and thus creating optimum portfolio of estimated low ¦Â values. There are many traditional as well modern stock market theories prevalent in the system to facilitate common investors to enhance their returns from the stock market. Investors usually only focus on expected returns from their investments in the stock market and the forego various types of systematic and unsystematic risks involved in their investments in stock market that is basically risky way for investment. Therefore this paper is an attempt to inculcate some basic as well as advance knowledge to create awareness about various types of risks involved in their investments. In this paper we, researchers have considered beta to be measured of different stocks taken from various sectors in the stock market.

Suggested Citation

  • Syed Mohammad Faisal & Ahmad Khalid Khan & Omar Abdullah Al Aboud, 2018. "Estimating Beta (¦Â) Values of Stocks in the Creation of Diversified Portfolio - A Detailed Study," Applied Economics and Finance, Redfame publishing, vol. 5(3), pages 89-99, May.
    • Handle: RePEc:rfa:aefjnl:v:5:y:2018:i:3:p:89-99
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    References listed on IDEAS

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    2. Alexander, Gordon J. & Benson, P. George, 1982. "More on Beta as a Random Coefficient," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 17(1), pages 27-36, March.
    3. M. J. Gordon, 1963. "Optimal Investment And Financing Policy," Journal of Finance, American Finance Association, vol. 18(2), pages 264-272, May.
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    5. Dębski Wiesław & Feder-Sempach Ewa & Świderski Bartosz, 2016. "Beta Stability Over Bull and Bear Market on the Warsaw Stock Exchange," Folia Oeconomica Stetinensia, Sciendo, vol. 16(1), pages 75-92, December.
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    More about this item

    Keywords

    beta; risk and return; investment; portfolio; CAPM;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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