Alphas and Betas in Investments

There has been a lot of garboils among the investment community due to the sharp speculations and precipitations in the stock indices since last fortnight. At this stage better indicants and forecasters will be a succor to the distressed investors. Sometime this week I noticed in the daily that is profitable to investors especially… There are some parameters that help lucrative investors to reap their goal… Two pivotal factors which gauge the productivity of a stock are the Alpha and Beta values…. These are used for forecasting and decision making by Portfolio Managers and Investment Bankers.

Beta value is specifically an indicant whose value hints the risk involved with the stock in comparison with the market risk. If equal to one indicating that the risk with the stock is same as that with the market. And if greater than one telling that stock risk is more than market risk and vice versa. This parameter portends the impending risks involved with the stock. Typical examples of High Beta stocks will be Metals and Oil stocks where in the risks involved will be more and that of Low Beta stocks will be Pharmaceuticals and FMCG.

Coming to Alpha factor, its value specifically measures the excess return made in by the stock than the return predicted by the Capital Asset pricing model for a given Beta. If greater than indicating that the stock has out performed market expectations and vice versa. It is calculated as the difference between the excess return made than the return made over risk free return. Typical examples of High Alpha stocks will be engineering stocks and Power stocks and that of Low Alpha will be Oil stocks and Power.

So as a prudent investor, one should choose stocks with High Alpha for a given Beta based on his/her own risk appetites. These values can be obtained form your own investment banker. And always as the market jargon goes “High Risk, High Gains”, taking higher Beta and Alpha is all set to rain money, but beware the risk should always be a calculated one.


PS: My intention is not to transform the reader into investment behemoths but only to ameliorate their financial cognizance.

Racist Hues

Racism according to dictionary means “The prejudice that members of one race are intrinsically superior to members of other races”. I read some articles related to racism which is very much prevalent in South Africa and Australia.

This poem was nominated poem of 2005 for the bestpoem, written by an African kid.........amazing thought!!!

When I born, I Black,
When I grow up, I Black,
When I go in Sun, I Black,
When I scared, I Black,
When I sick, I Black,
And when I die, I still black..

And you White fella,
When you born, you Pink,
When you grow up, you are white,
When you go in Sun, you Red,
When you cold, you Blue,
When you scared, you Yellow,
When you sick, you Green,
And when you die, you Gray..
And you calling me Colored??

Very interesting indeed... clearly evinces the agony against Racism.

The Debut

This is my opening innings with blog scripting. I stood near my room’s window gazing at the road opposite ruminating what to write about. The weather was a bit murky and it seems that the over laden nimbus will be in lachrymose prompting me to start churning my creativity. Should I write about myself or nature or society or alma mater or something antiquated or something ubiquitous or something ulterior. I asked this to myself again and again. Then something struck me as a lightning. Why not I scribe based on vox populi? Yeah… A good cogitation... I said to myself.

Then I started peeping into other blogs stochastically, in a hope of getting feed for my thoughts. Most of the sites visited were vivid and dealt with pragmatic issues which made me flummoxed with their immense innovations and creativity. So I decided to scribble about something total disparate and spellbinding.

Now I’m staring at my PC mulling on some interesting subjects… Shall I scribe about computers??... Good idea…but on what to pen about…being in the cyber industry I’m already submerged in this software ocean without knowing my destination…

So what should I start with…? Oh my god… I’ve scribbled almost a page… so why should I start when I’m almost finished?

PS: Hope I’ll scribe about some swags in my next over ;)

BBC தமிழ்

Now the most favoured BBC is in Desi Tamil Version. Enjoyyyy

Some Interesting Facts - I

· Intelligent people have more zinc and copper in their hair.

· The world's youngest parents were 8 and 9 and lived in China in 1910.

· Our eyes remain the same size from birth onward, but our noses and ears never stop growing.

· You burn more calories sleeping than you do watching TV.

· A person will die from total lack of sleep sooner than from starvation. Death will occur about 10 days without sleep, while starvation takes a few weeks.

· The Mona Lisa has no eyebrows.

· When the moon is directly overhead, you weigh slightly less.

· Alexander Graham Bell, the inventor of the telephone, never telephoned his wife or mother because they were both deaf.

· A psychology student in New York rented out her spare room to a carpenter in order to nag him constantly and study his reactions. After weeks of needling, he snapped and beat her repeatedly with an axe leaving her mentally retarded .

· "I am." is the shortest complete sentence in the English language.

· Colgate faced a big obstacle marketing toothpaste in Spanish speaking countries because Colgate translates into the command "go hang yourself."

· The smallest unit of time is the yoctosecond.

· Like fingerprints, everyone's tongue print is different.

· "Bookkeeper" is the only word in English language with three consecutive double letters.
· Right handed people live, on average, nine years longer than left handed people do.

· The sentence "the quick brown fox jumps over the lazy dog" uses every letter in the english language. (Sentences containing every letter of the alphabet are called "pangrams", or "holalphabetic sentences").

· If the population of China walked past you in single line, the line would never end because of the rate of reproduction .

· China has more English speakers than the United States.

· Every human spent about half an hour as a single cell.

· Each square inch of human skin consists of twenty feet of blood vessels.

· An average person uses the bathroom 6 times per day.

· Babies are born with 300 bones, but by adulthood we have only 206 in our bodies.

· Beards are the fastest growing hairs on the human body. If the average man never trimmed his beard, it would grow to nearly 30 feet long in his lifetime.

· According to Genesis 1:20-22, the chicken came before the egg.

· The longest place name still in use is: Taumatawhakatangihangaoauauotameteaturipukakpikimaungahoronukupokaiwhenuakitanatahu - a New Zealand hill.

· If you leave Tokyo by plane at 7:00am, you will arrive in Honolulu at approximately 4:30pm the previous day.

· Scientists in Australia's Parkes Observatory thought they had positive proof of alien life, when they began picking up radio-waves from space. However, after investigation, the radio emissions were traced to a microwave in the building.

· The average four year-old child asks over four hundred questions a day.

· The average person presses the snooze button on their alarm clock three times each morning.

· The three wealthiest families in the world have more assets than the combined wealth of the fourty-eight poorest nations.

· The first owner of the Marlboro cigarette Company died of lung cancer.