What are the Uses of Beta?
Beta can play a part in stock selection and hedging strategies. In this video, Abdulla explores some applications of beta in the markets.
Overview
Beta is a highly used measure that can explain cyclicality and be used for hedging purposes. Beta is also a crucial component in calculating a company’s cost of capital.
Key learning objectives:
Explain the characteristics of high/low beta stocks
Describe the practical uses of beta
Summary
Expert
Abdulla Javeri
Abdulla’s career in the financial markets started in 1990 when he entered the trading floor of the London International Financial Futures Exchange, LIFFE, and qualified as a pit trader in equity and equity index options. In 1996, Abdulla became a trainer for regulatory qualifications and then for non-exam courses, primarily covering all major financial products.
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