How can a country that is not closely linked to the world economy have a large...

How can a country that is not closely linked to the world economy have a large beta?

Solutions

Expert Solution

The beta is the measure of particular stock in the market. If higher is average of particular stock the beta has highest volatility inter market. If the lower of the average roof particular stock in the market the beta has lower volatility in particular market.

The value of particular country beta is measured in terms of rotational cycle in the world market. It is depends upon all the it will be calculated with world market in terms of cycle up's like suppression and it can be constant at particular stage and it will be lower depression stage in the rotational cycle.

If the beta of particular country is high average it is in suppression stage and if it is in constant the market of world economy is constant at that particular stage their is no change in the market, if the beta of particular country is lower beta is lower average stage with in the country compare to the world market.

Beta is the one of the best measure in the world market economy.

jeff jeffy answered 1 year ago

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