Question

Over long periods of time, which type of stock has historically outperformed
the other: low beta stocks or high beta stocks? Why do you think that is so?

Answer 1

Over lona ponia long periods Over of time, which type of historically outperformed the others low time, which bude slock has www leta stocks os y do you think that is so er easy but on the period S&P BSE the sock market is never easy preally-the toughest even the pe Quen__dozeo sbcke from the S&P or the :--- Ang Making money o The shock ------ has been prolally the ---Oltimeletover_ doze -50-pack chave doubled inves.122-we have one huntin_common 21.12.months. Au alten they all are high beta slocks with his b_Suisk bowhusbaus_and unvesbe -Ho.lezance_may bevaterested in looking fou_high gran high abeta stocks High bela slocks can be used ? for generating high returns but they also have signih? last doucnside isk_when market fous The S&P BSE sensex has lost a little overs -per cent since last Tune, but if high bela slocks more than doubled javeshonwealth in the same puid The fall in the index was led iry losses in double digin in the shares of BHEL, Adanani Push ONGL CIL 8B1_and CICLA. The high befa slacks that have outperfrmed the Sensex and Nifty one year over the past include Spice Jet, Himat singka, Balrampus chini, Gayatri Project, 8k Miles, GHCL , India bulbs 7.ecal estates, Oishman, Rajesh exporib, Jet Airways The beta of the market is usually one and the general rule is that is a shock has a beta of more than one! wit is.considered niskey it has the potential to provide better rehmas o good times. The domestic market is attratively priced to reap the benefit of a higher economic growth rate, which is likely to hit 81. mis financial year in this scenario, companies from the midesp_and smallcap segmemb me likely to remain on invesbr radar in anticipahan of higher earnings growth Midcap and small.cop socks are good proxies to play the economic growth,

the present canoe.there he market trends lish Medium ho. Long Jerm and ut bon lirykd d poleohial compared it will de prudent for sovestors to hold Exisha which bela marinaru. Their pontos. Coming Quan us likely who improve and wt sem na conamic down huo...Lycus behind this hleb stocker coopwovie excephoral hon over long term. Beta is just one of the factores investors should Cook et before picking slocks, Beta gives a measure of risk of volatility A hich lela does not neccessarily mean high 9115k..naost shocks. That are in prown phase would also have a high leta. Ideally investors should use other parameters such as return on equily growth riak delt levels of leverage under book and profit margins to bonilist their pool og socks High Bela names which are fundamenblly strong and have_posible growth poissons can be coud. bet to hold Current levels. Low li quudily un such cabuks maksa 900 2100m w hold such.companies