BETA COEFFICIENT IN THE CALCULATION OF MARKET RISKS

PhD Tursunkhodjaeva Shirin
Tashkent Institute of Finance

Abstract. In the context of globalization and internationalization of world markets, the openness of the national economy, the growing transformation of the digital economy make the issue of financial risk management in real sector enterprises an actual. Market risk is the risk that directly affects the value of equity instruments. The beta coefficient is one of the key indicator in calculating market risk. The importance of calculating the beta ratio is that it gives a clear idea of how to get an average stable return and minimize the risk of investing in a particular financial instrument. By measuring this indicator, negative consequences for the real sector enterprise are prevented. However, this coefficient has a number of shortcomings. It does not take into account unsystematic risks and relies on historical data, and as a result, as the rate of return increases, the Beta measure and the cost of equity increase. In this study, the essence of this indicator, calculation methods and calculations on the example of real sector enterprises will be considered.

Key words. Financial risk, beta coefficient, market risk, systematic risk.

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