Copyright 2007 Money-zine.

com

BETA CALCULATION FOR DATE

Sept 08 to Oct 08,2010 Stock Prices

SEPT 08,2010
BSE INDEX
20,250.26
JAGSON AIRLINES
14.60 BSE
Returns
JAGSON AIRLINES

JAGSONS AIRLINES LTD. SEPT 09,2010

SEPT 13,2010
SEPT 14,2010
18,799.66
19,208.33
19,346.96
16.80
16.00
15.25
-7.16%
2.17%
0.72%
15.07%
-4.76%
-4.69%
SEPT 15,2010 19,502.11 14.55 0.80% -4.59%
SEPT 16,2010 19,417.49 14.40 -0.43% -1.03%
SEPT 17,2010 19,594.75 14.35 0.91% -0.35%
SEPT 20,2010 19,906.10 14.85 1.59% 3.48%
SEPT 21,2010 20,001.55 14.95 0.48% 0.67%
SEPT 22,2010 19,941.72 14.75 -0.30% -1.34%
SEPT 23,2010 19,861.01 14.05 -0.40% -4.75%
SEPT 24,2010 20,045.18 14.05 0.93% 0.00%
SEPT 27,2010 20,117.38 14.35 0.36% 2.14%
SEPT 28,2010 20,104.86 14.00 -0.06% -2.44%
SEPT 29,2010 19,956.34 13.65 -0.74% -2.50%
SEPT 30,2010 20,069.12 13.70 0.57% 0.37%
OCT 01,2010 20,445.04 13.97 1.87% 1.97%
OCT 04,2010 20,475.73 13.67 0.15% -2.15%
Stock Ticker: JAGSON AIRLINES OCT 05,2010 20,407.71 13.74 -0.33% 0.51%
OCT 06,2010 20,543.08 13.44 0.66% -2.18%
OCT 07,2010 20,315.32 14.11 -1.11% 4.99%
OCT 08,2010 20,250.26 14.60 -0.32% 3.47%
Beta Alpha
BSE JAGSON AIRLINES BSE JAGSON AIRLINES
1.000 (1.737) - 0.001

Standard deviation 0.03

Correlation -0.72

INTERPRETATION :-

(1) Interpretation based on beta

Beta values are fairly easy to interpret.  If the stock's price experiences movements that are
greater - more volatile - than the stock market, then the beta value will be greater than 1. If a
stock's price movements are less than those of the market then the beta value will be less than 1.

Here in case of Jagson airlines the beta value is -1.737 that shows that the stock price movement
of Jagson airlines is less than those of market. Here in this case Jagson stocks are less volatile,
have lower risk, and therefore lower overall returns.
Since there is less volatility of stock price means less risk to the investor and there is less expect
returns from stocks .
So , in this case there is low risk involved for the investor in Jagson airlines stock with lesser
return.

(2) Interpretation based on alpha

In an efficient market , the expected value of the alpha coefficient is zero. Therefore the alpha
coefficient indicates how an investment has performed after accounting for the risk it involved:
α < 0: the investment has earned too little for its risk (or, was too risky for the return)
αi= 0: the investment has earned a return adequate for the risk taken
α > 0: the investment has a return in excess of the reward for the assumed risk

Here in case of Jagsons stock the value of alpha is 0.001 which is greater than 1 which indicates
that the investment in Jagsons has a return in excess of the reward for the assumed risk.

11/01/2010 13:54:36 Beta Calculation 43272334.xls