SOCIAL EFFECTS OF INDEX BETA USE IN INVESTMENTS, AS RISK PREDICTION FOR ENTERPRISE SUSTAINABILITY.

Year 2018, Volume: 4 Issue: 3, 331 - 343, 30.11.2018

Jesus Vıvanco

Abstract

ABSTRACT

The Beta index is a
tool that provides the level of risk that is to select a portfolio of
investment on a basis of reference can be the cetes yields since these are
investment securities which do not represent risks for the investor in Mexico
and to compare the variance and the covariance of returns of selected titles to
invest you can get the BETA index, and insofar as this index is lower the
deviation with the reference index will be smaller, which means a lower risk of
obtaining the expected yields, in this work were selected 20 investment options
in 4 different company different portfolios listed in Mexico that belong to
different economic sectors of the country and the results indicate that 2
portfolios show negative results and 1 of them have results positive very low
what represents an option of portfolio with high possibilities of achieve the
results expected and for the portfolio with results negative, it means that the
results will be inverse to the movement of the reference index, serving this
empirical evidence of reference for potential investors in the companies
analyzed in empirical cases displayed in this work, and this work could help on
the enterprise sustainability, since the beta index used in this analysis avoid
the risk of loses or could make gain profits from the base of beta analysis
results assuring the enterprise sustainability, which represents a positive
social impact, since it makes possible to make the enterprise  to have more possibilities of permanence in
the market.

Keywords

Index Beta, Predictiion

SOCIAL EFFECTS OF INDEX BETA USE IN INVESTMENTS, AS RISK PREDICTION FOR ENTERPRISE SUSTAINABILITY

Abstract

ABSTRACT

The Beta index is a
tool that provides the level of risk that is to select a portfolio of
investment on a basis of reference can be the cetes yields since these are
investment securities which do not represent risks for the investor in Mexico
and to compare the variance and the covariance of returns of selected titles to
invest you can get the BETA index, and insofar as this index is lower the
deviation with the reference index will be smaller, which means a lower risk of
obtaining the expected yields, in this work were selected 20 investment options
in 4 different company different portfolios listed in Mexico that belong to
different economic sectors of the country and the results indicate that 2
portfolios show negative results and 1 of them have results positive very low
what represents an option of portfolio with high possibilities of achieve the
results expected and for the portfolio with results negative, it means that the
results will be inverse to the movement of the reference index, serving this
empirical evidence of reference for potential investors in the companies
analyzed in empirical cases displayed in this work, and this work could help on
the enterprise sustainability, since the beta index used in this analysis avoid
the risk of loses or could make gain profits from the base of beta analysis
results assuring the enterprise sustainability, which represents a positive
social impact, since it makes possible to make the enterprise  to have more possibilities of permanence in
the market.

 

References

• Reference 1 Journal of Systemics, Cybernetics, and Informatics ISSN Number: 1690-4524 On line " Challenges for Using IT in Mexico health care Industry Aguascalientes Mexico Case".