CALCULATION OF BETA OF NTPC LIMITED AND ITS SIGNIFICANCE<\/p>\n
NAME OF THE AUTHOR: Nikita Kopulwar<\/p>\n
INTRODUCTION
\nNTPC is India\u2019s largest power utility with an installed capacity (including JVs), plans to become a 130 GW company by 2032. Established in 1975, NTPC aims to be the world\u2019s largest and best power major
\nOBJECTIVES
\nTo calculate beta of NTPC Limited and its significance<\/p>\n
DATA COLLECTION
\nData of NTPC 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 NTPC= 1.14 + 1.45 Weekly Return of Nifty + E
\n\u2022\tt-stat = 7.1521
\n\u2022\tR2 = 0.491
\n\u2022\tF = 51.763
\n\u2022\tN = 49
\nThe above equation tells us the relationship between Weekly Return of NTPC 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, NTPC will rise by 1.565 units and vice versa.
\nNumber of Observations are 49 and t-stat is 7.1521.
\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 0.491, which means that 49.1% of Y (NTPC) is explained by X (nifty), balance of 50.9% is error. Error is due to the variables which are not in the model.
\nF is 51.763, the P value for which is 0 < 0.01, means overall the model is statistically significant.<\/p>\n
CONCLUSION
\nSince b = 1.465 is greater than 1, it is statistically significant.
\nNTPC Ltd. is a good option for investment because for every increase in nifty there will an increase in the equity of NTPC.<\/p>\n","protected":false},"excerpt":{"rendered":"
CALCULATION OF BETA OF NTPC LIMITED AND ITS SIGNIFICANCE NAME OF THE AUTHOR: Nikita Kopulwar INTRODUCTION NTPC is India\u2019s largest power utility with an installed capacity (including JVs), plans to become a 130 GW company by 2032. Established in 1975, NTPC aims to be the world\u2019s largest and best power major OBJECTIVES To calculate beta… Continue reading CALCULATION OF BETA OF NTPC LIMITED AND ITS SIGNIFICANCE<\/span><\/a><\/p>\n","protected":false},"author":109234,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,38],"tags":[],"class_list":["post-16956","post","type-post","status-publish","format-standard","hentry","category-economics","category-finance","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16956","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\/109234"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16956"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16956\/revisions"}],"predecessor-version":[{"id":16994,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16956\/revisions\/16994"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16956"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}