TITLE: CALCULATION OF BETA OF GODREJ PROPERTIES LIMITED AND ITS SIGNIFICANCE
\nNAME OF THE AUTHOR: GAYATHRI P S<\/p>\n
INTRODUCTION
\nGodrej Properties Ltd, belonging to the Godrej Group, is one of the leading real estate development companies in India involved in all activities associated with the development of residential and commercial real estate. The company is focused on developing residential, commercial, retail and IT projects across cities like Mumbai, Pune, Bangalore, Kolkata, Hyderabad, etc.<\/p>\n
OBJECTIVES
\nTo calculate beta of Godrej Properties Limited and its significance<\/p>\n
DATA COLLECTION
\nData of Godrej Properties Limited from 01-12-2021 to 30-11-2022 from NSE website
\n\u2022\tFriday weekly closing prices has been found out
\n\u2022\tWeekly Return have been calculated with the formula of (Y2-Y1)\/Y1*100
\n\u2022\tWeekly Return of Equity have been regressed on Weekly Return of Nifty<\/p>\n
DATA ANALYSIS
\nWeekly Return of Godrej Properties = 1.240 + 1.565 Weekly Return of Nifty + E
\n\u2022\tt-stat = 7.259
\n\u2022\tR2 = 0.529
\n\u2022\tF = 52.692
\n\u2022\tN = 49
\nThe above equation tells us the relationship between weekly return of godrej properties and weekly return of nifty. The positive sign means that there is a direct relationship. If nifty rises, equity rises and if nifty falls, equity falls. The co-efficient of weekly return of nifty is 1.565, which means if nifty rises by 1 unit, Godrej properties will rise by 1.565 units and vice versa.
\nNumber of Observations are 49 and t-stat is 7.259.
\nP value is 0, which is less than 0.05, means that b is statistically significant at 5%. Even it is less than 0.01, b is statistically significant at 1% level.
\nR2 is 0.529, which means that 52.9% of Y (godrej properties) is explained by X (nifty), balance of 47.1% is error. Error is due to the variables which are not in the model.
\nF is 52.692, the P value for which is 0 < 0.01, means overall the model is statistically significant.<\/p>\n
CONCLUSION
\nSince b = 1.565 is greater than 1, it is statistically significant.
\nGodrej Properties Ltd. is a good option for investment because for every increase in nifty there will an increase in the equity of Godrej Properties.<\/p>\n","protected":false},"excerpt":{"rendered":"
TITLE: CALCULATION OF BETA OF GODREJ PROPERTIES LIMITED AND ITS SIGNIFICANCE NAME OF THE AUTHOR: GAYATHRI P S INTRODUCTION Godrej Properties Ltd, belonging to the Godrej Group, is one of the leading real estate development companies in India involved in all activities associated with the development of residential and commercial real estate. The company is… Continue reading Calculation of Beta of Godrej Properties Ltd. and its significance<\/span><\/a><\/p>\n","protected":false},"author":108067,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-16818","post","type-post","status-publish","format-standard","hentry","category-finance","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/108067"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16818"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16818\/revisions"}],"predecessor-version":[{"id":16854,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16818\/revisions\/16854"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16818"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}