Calculation of Beta of Infosys Ltd.
\nAuthor: Isha Agrawal.<\/p>\n
Introduction:
\nInfosys is an Indian multinational corporation that provides business consulting, technology, engineering, and outsourcing services. It was founded in 1981 by seven entrepreneurs with a capital investment of just $250. Today, Infosys is one of the largest and most successful information technology companies in the world, with a market capitalization of over $60 billion and a global workforce of over 300,000 employees.<\/p>\n
Infosys is known for its innovative business model, which is based on the principles of global delivery and the use of offshore outsourcing to provide high-quality services at competitive prices. The company has a strong focus on sustainability, social responsibility, and diversity, and has received numerous awards and recognitions for its efforts in these areas. Infosys has a strong presence in many countries around the world, with a particularly large market share in the United States, Europe, and Asia. Its clients include some of the world’s largest and most respected companies in a variety of industries, including finance, healthcare, manufacturing, and telecommunications.<\/p>\n
Objective:
\nTo calculate beta of Infosys Ltd.<\/p>\n
Data Collection:
\nData of Infosys from 01-01-2022 to 31-12-2022 was downloaded from the
\nNSE website.
\n\u2022 Friday\u2019s weekly closing prices have been found out.
\n\u2022 Weekly Return have been calculated with the formula of
\n(Y2-Y1)\/Y1*100
\n\u2022 The Weekly Return of Equity has been regressed on the Weekly Return of nifty.<\/p>\n
Data Analysis:
\nWeekly Return of Infosys ltd = 1446.62114466 + 12.07465509 Weekly Return of Nifty
\n\u2022 t-stat = 40.67115903
\n\u2022 R2 = 0.012046688
\n\u2022 F = 0.5852891859
\n\u2022 N = 50<\/p>\n
The above equation tells us about the relationship between the Weekly Return of Infosys Ltd & Weekly Return of Nifty 50. The negative sign means that there is an inverse relationship. If nifty 50 rises, equity falls and, if nifty 50 falls, equity rises. The co-efficient of the weekly return of nifty is1446.62114466, which means if nifty rises by 1 unit, Infosys ltd will fall by 12.07465509 units and vice versa.<\/p>\n
\u2022 The number of Observations is 50 and the t-stat is 40.67115903.
\n\u2022 The p-value is 0, which is more than 0.05, means that b is statistically insignificant at 5%. Even if it is more than 0.01, b is statistically insignificant at 1%.
\n\u2022 R2 is 0. 012046688, which means that 1.204% of Y (Infosys ltd) is explained by X (nifty), and the balance of 25.142% is error. Error is due to the variables which are not in the model.
\n\u2022 F is 0.585291859, the P value for which is 0. 585291859 > 0.01, which means overall the model is statistically insignificant.<\/p>\n
Conclusion:
\nSince b = 12.07465509 is more than 1, it is statistically significant.
\nInfosys Ltd is a good option for investment because for every increase in nifty<\/p>\n","protected":false},"excerpt":{"rendered":"
Calculation of Beta of Infosys Ltd. Author: Isha Agrawal. Introduction: Infosys is an Indian multinational corporation that provides business consulting, technology, engineering, and outsourcing services. It was founded in 1981 by seven entrepreneurs with a capital investment of just $250. Today, Infosys is one of the largest and most successful information technology companies in the… Continue reading calculation of beta of Infosys ltd.<\/span><\/a><\/p>\n","protected":false},"author":109319,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-16962","post","type-post","status-publish","format-standard","hentry","category-management","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16962","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\/109319"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16962"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16962\/revisions"}],"predecessor-version":[{"id":16988,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16962\/revisions\/16988"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16962"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}