There are three things one must factor in while buying a high beta stock
However, being a high beta stock
, we believe that it is extremely vulnerable to economic and political shocks, relative to its peers.
We expect the Emaar Mall to be a high beta stock
," Haddad said.
This is especially true for high beta stocks
, where the upside and downside potential are greater.
It is not surprising, the high beta stocks
are rebounding faster.
The resulting gain of 10 percent will mean higher gain for high beta stocks
This provides further impetus to our favorite theme of high D/Y, high leverage and high beta stocks
High- beta stocks
are those that move more than the overall market.
Panel data analysis also confirms that the beta is highly statistically significant in explaining a fund's total return, which implies that high beta stocks
have a lower market risk premium in comparison to low beta stocks
Zero investment portfolios that long the highest 20% of IDVOL beta stocks
and short lowest 20% of IDVOL beta stocks
have abnormal returns of about -0.
If there is a positive relationship between expected return and risk as CAPM asserts, one should expect that higher beta stocks
would experience higher expected returns.
growth next year hit high beta stocks
, which track risk sentiment, the hardest, with energy, mining and banks leading the index down.