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

Authors : Jesus VIVANCO

Pages : 331-343

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Publication Date : 2018-11-30

Article Type : Research Paper

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