Beta Flucuation.docx - Beta is a numeric value that measures the fluctuations of a stock to changes in the overall stock market Beta measures the

Beta Flucuation.docx - Beta is a numeric value that...

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Beta is a numeric value that measures the fluctuations of a stock to changes in the overall stock market. Beta measures the responsiveness of a stock's price to changes in the overall stock market. On comparison of the benchmark index. This helps the investor to decide whether he wants to go for the riskier stock that is highly correlated with the market, or with a less volatile one. We have taken the share stock price of WestPack Banking and also the All Ordinaries(AORD) price as per the stock market and calculated beta over the years.The beta in the year 1 is positive means there is less chance of fluctuation of the stock price of the bank.Since Beta in the year 1 is 0.0007 which is between 0 and 1 that definitely indicates there is less chance of Inflation in the share prices. During the year 4,the all ordinaries of overall company was steady but in the following year it decreased leading to make negative beta which resulted in the fluctutation over the year in beta index.Likewise the return was also abit less than Year 3 which impacted in return of WestPac Bank;s return as well.And after
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  • Three '17
  • syan

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