# - Risk and Return indicated herein are in terms of Beta i.e. with respect to the stock index which has a Beta value of one. Thus Medium indicates a Beta of unity, High indicates a Beta of 1.25 and Very High denotes a Beta of 1.5 and above. Similarly Low denotes a Beta of 0.75 and Very Low denotes a Beta value of less than 0.50.
Thus if a product is rated for a return of High, it means investors should expect returns of the order of 25% more than the stock indices. Similarly if a product is rated for a risk of High, it means investors should be prepared for 25% more risk than Nifty or BSE Sensex. |