Talk:Beta (finance)/Archives/2014
Latest comment: 10 years ago by Mahlanguluul in topic Free Margin
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Taking a stab at simplifying the initial definition
I agree with other posters that this article is disorganized and mixes in some dubious information with some technical stuff. It's too bad, because this is one of the most important concepts in quantitative finance and deserves a first-rate article. I'm not going to attempt to fix everything, but at least the initial definition should be both precisely correct and understandable to lay readers. AaCBrown (talk) 20:24, 18 January 2014 (UTC)
- Just to add fun, there might be a problem with the currency taken as the market reference. If all assets are priced in the same currency (for example the US dollar) the beta of the currency (which is an asset also) is zero I suppose (the price in dollars of a one dollar bill does not move). But if they are priced in various currencies? Or maybe something is wrong with my reasoning ?--Pgreenfinch (talk) 18:29, 19 January 2014 (UTC)
- There are interesting things to say about Beta and currencies, but I think they're beyond the scope of this article. In theory, the concept of Beta requires an agreed numeraire (which need not be a currency, just any common standard of value). With a numeraire, beta is dimensionless. However, if you convert all asset prices to a single currency, you will get different values of beta for portfolios depending on which currency you choose. You cab get large differences if you choose something like gold or oil or non-major currency instead of a major currency.
- In most theories, currencies are liabilities as well as assets, so they exist in zero net supply, and do not form part of the market portfolio.
- OK. Thanks --Pgreenfinch (talk) 17:02, 20 January 2014 (UTC)
Free Margin
Entry to free market has favoured limited acc.of stock at 27.92%.Upbeat at two days low,The market stand at 1.791and other calculated market interest were included.1beta.62 were recorded and included in the bill M+1 Mahlanguluul (talk) 13:50, 4 July 2014 (UTC)