Illustration 1
From the following information calculate Beta of a security:
| Year | Return on Security % | Return on Market Portfolio % |
| 1 | 10 | 12 |
| 2 | 12 | 11 |
| 3 | 15 | 14 |
| 4 | 10 | 12 |
| 5 | 08 | 11 |
Illustration 2
Calculate beta B in case of share of Nelco Ltd., whose returns and market portfolio returns are given below:
| Year | Nelco Ltd. | Market Portfolio Returns |
| 1 | 20 | 14 |
| 2 | 24 | 18 |
| 3 | 10 | 9 |
| 4 | 15 | 14 |
| 5 | (10) | (8) |
| 6 | 12 | 10 |
| 7 | 18 | 16 |
| 8 | 28 | 30 |
| 9 | 33 | 35 |
| 10 | 40 | 42 |
Â
Illustration 3:
From the following details, calculate Beta of a security.
| Year | Return on Security (%) | Return on Market Portfolio (%) |
| 1 | 10 | 12 |
| 2 | 12 | 10 |
| 3 | 13 | 10 |
| 4 | 10 | 12 |
| 5 | 8 | 15 |
| 6 | 11 | 14 |
| 7 | 16 | 20 |
| 8 | 12 | 15 |
| 9 | 18 | 20 |
| 10 | 20 | 22 |
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