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ASSIGNMENT
Covariance = 1.656988
Beta = 0.99766
Inference:
In this case Mr. Mohan wants to know whether stock price of HDFC Bank are in sync with the
market conditions are not.
By comparing the mean return of HDFC stock and that of market return for the particular period
of the time. We can say that even though market gives negative return. The stock prices gives
positive return which is good option to the investment.
By looking at the beta value 0.997 is less than 1 which means the stocks are less volatile. In
comparison with the market condition, with the stock beginning less risk Mr. Mohan can look for
investment in the stocks of HDFC.