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

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 β 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.