5.

BETA AND ITS DEFINITION

Risk is one of the considerations taken into account before an investor buy or sell stock in the

stock market. As risk and return are closely related, investors with different level of risk acceptance will
need an indicator to evaluate the risk and return of a particular stock. One of the indicators of risk used is
a statistical measure called beta.
According to definition of beta provided by NASQUE.com, beta is an assets risk in relation to
the market (for example, the S&P 500) or to an alternative benchmark or factors (Harvey, 2011). He
further explained that there are number of issues investors need to be aware of when using beta:

Beta may change through time

Beta may be different depending on the direction of the market

For example, beta may be greater for down moves in the market rather than the up moves

The estimated beta will be biased if the security does not frequently trade

The beta is not necessarily a complete measure of risk

Beta is a measure of co-movement, not volatility. It is possible for a security to have a zero
beta and higher volatility than the market.

As higher beta indicates higher risk, it is normally associated with higher return while low-beta
indicates otherwise. As beta is a key component in calculating capital asset pricing model (CAPM) to
determine cost of equity, which is the discount rate to determine the present value of a companys future
cash flow. Therefore, beta can influence a companys share evaluation as higher discount rate will lower
the present value on a companys future cash flow (McClure, 2012).
In addition to that, The Economic Times gives implication of beta in the other way. Instead of
risk, beta simply measures the fluctuations or responsiveness of stock to changes in the overall stock
market. However, it gives information to investors to decide whether buy a riskier stock that is highly
correlated with the market (beta above 1), or with less volatile ones (beta below 1).
To determine the meanings behind the figure of beta, it is essential for us to understand what the
various beta ranges mean. (Wikipedia, 2014) provides interpretation as below:
Value of
Beta
<0
=0
0<<1
=1
>1

Interpretation
Asset moves in the opposite direction as compared to the index
Movement of the asset is uncorrelated with the movement of the
benchmark
Movement of the asset is generally in the same direction as, but less
than the movement of the benchmark
Movement of the asset is generally in the same direction as, and about
the same amount as the movement of the benchmark
Movement of the asset is generally in the same direction as, but more
than the movement of the benchmark

5.1

BETA FOR MALAYAN BANKING BERHAD IN COMPARISON WITH KLSE

Table 13.0: KLSE and Malayan Banking Berhad
DATE

Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12

INDEX / PRICE
MONTHLY
KLSE
MYBNK
884.45
4.08
890.67
3.96
872.55
3.00
990.74
3.37
1,044.11
3.92
1,075.24
4.58
1,174.90
5.05
1,174.27
5.06
1,202.08
5.16
1,243.23
5.18
1,259.11
5.24
1,272.78
5.33
1,259.16
5.27
1,270.78
5.41
1,320.57
5.80
1,346.38
5.95
1,285.01
5.70
1,314.02
5.87
1,360.92
6.01
1,422.49
6.52
1,463.50
6.83
1,505.66
6.99
1,485.23
6.94
1,518.91
6.94
1,519.94
7.10
1,491.25
7.03
1,545.13
7.31
1,534.95
7.36
1,558.29
7.50
1,579.07
7.52
1,548.81
7.37
1,447.27
7.34
1,387.13
6.73
1,491.89
7.04
1,472.10
7.27
1,530.73
7.52
1,521.29
7.18
1,569.65
7.66
1,596.33
7.77
1,570.61
7.88
1,580.67
7.99

RATE RETURN
MONTHLY %
KLSE
MYBNK
0.70%
-2.03%
13.55%
5.39%
2.98%
9.27%
-0.05%
2.37%
3.42%
1.28%
1.09%
-1.07%
0.92%
3.92%
1.95%
-4.56%
2.26%
3.57%
4.52%
2.88%
2.88%
-1.36%
2.27%
0.07%
-1.89%
3.61%
-0.66%
1.52%
1.33%
-1.92%
-6.56%
-4.16%
7.55%
-1.33%
3.98%
-0.62%
3.18%
1.70%
-1.61%
0.64%

-2.94%
-24.24%
12.33%
16.32%
16.84%
10.26%
0.20%
1.98%
0.39%
1.16%
1.72%
-1.13%
2.66%
7.21%
2.59%
-4.20%
2.98%
2.39%
8.49%
4.75%
2.34%
-0.72%
0.00%
2.31%
-0.99%
3.98%
0.68%
1.90%
0.27%
-1.99%
-0.41%
-8.31%
4.61%
3.27%
3.44%
-4.52%
6.69%
1.44%
1.42%
1.40%

Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Variance
Covariance
Beta

1,599.15
1,631.60
1,646.11
1,636.66
1,673.07
1,610.83
1,688.95
1,627.55
1,637.63
1,671.63
1,717.65
1,769.22
1,773.54
1,772.62
1,727.58
1,768.62
1,806.85
1,812.72
1,866.96

7.94
8.00
8.35
8.51
8.53
8.55
8.69
8.39
8.65
8.83
9.41
9.96
10.17
10.03
9.78
9.84
9.76
9.78
10.04

1.17%
2.03%
0.89%
-0.57%
2.22%
-3.72%
4.85%
-3.64%
0.62%
2.08%
2.75%
3.00%
0.24%
-0.05%
-2.54%
2.38%
2.16%
0.32%
2.99%

-0.63%
0.76%
4.38%
1.92%
0.24%
0.23%
1.64%
-3.45%
3.10%
2.08%
6.57%
5.84%
2.11%
-1.38%
-2.49%
0.61%
-0.81%
0.20%
2.66%
0.0010
0.0011
1.0768

0.0031

From the calculation as shown above, the stock price of Malayan Banking Berhad experienced
greater volatile than the stock market as the beta is greater than 1. The table above shows it is 7.68%
more volatile than the market. Since increased volatility of stock price indicates more risk to the investor,
investors should expect greater returns from the stock of MYBNK.

5.2
BETA FOR CCK CONSOLIDATED HOLDINGS BERHAD IN COMPARISON WITH
KLSE
Table 14.0: KLSE and CCK Consolidated Holdings Berhad
DATE

INDEX / PRICE
MONTHLY
KLSE

Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11

884.45
890.67
872.55
990.74
1,044.11
1,075.24
1,174.90
1,174.27
1,202.08
1,243.23
1,259.11
1,272.78
1,259.16
1,270.78
1,320.57
1,346.38
1,285.01
1,314.02
1,360.92
1,422.49
1,463.50
1,505.66
1,485.23
1,518.91
1,519.94
1,491.25
1,545.13
1,534.95
1,558.29
1,579.07
1,548.81
1,447.27
1,387.13
1,491.89
1,472.10
1,530.73

RATE RETURN
MONTHLY %
CCK

KLSE

CCK

0.38
0.50
0.31
0.42
0.40
0.38
0.39
0.57
0.52
0.52
0.50
0.50
0.50
0.50
0.52
0.51
0.50
0.51
0.56
0.53
0.53
0.53
0.54
0.57
0.57
0.57
0.63
0.61
0.66
0.63
0.68
0.59
0.61
0.63
0.66
0.67

0.70%
-2.03%
13.55%
5.39%
2.98%
9.27%
-0.05%
2.37%
3.42%
1.28%
1.09%
-1.07%
0.92%
3.92%
1.95%
-4.56%
2.26%
3.57%
4.52%
2.88%
2.88%
-1.36%
2.27%
0.07%
-1.89%
3.61%
-0.66%
1.52%
1.33%
-1.92%
-6.56%
-4.16%
7.55%
-1.33%
3.98%

31.58%
-38.00%
35.48%
-4.76%
-5.00%
2.63%
46.15%
-8.77%
0.00%
-3.85%
0.00%
0.00%
0.00%
4.00%
-1.92%
-1.96%
2.00%
9.80%
-5.36%
0.00%
0.00%
1.89%
5.56%
0.00%
0.00%
10.53%
-3.17%
8.20%
-4.55%
7.94%
-13.24%
3.39%
3.28%
4.76%
1.52%

Jan-12

1,521.29

0.70

-0.62%

4.48%

Feb-12
Mar-12

1,569.65
1,596.33

0.76
0.84

3.18%
1.70%

8.57%
10.53%

Apr-12
May-12

1,570.61
1,580.67

0.84
0.83

-1.61%
0.64%

0.00%
-1.19%

Jun-12
Jul-12

1,599.15
1,631.60

0.83
0.82

1.17%
2.03%

0.00%
-1.20%

Aug-12
Sep-12

1,646.11
1,636.66

0.83
0.88

0.89%
-0.57%

1.22%
6.02%

Oct-12
Nov-12

1,673.07
1,610.83

0.89
0.88

2.22%
-3.72%

1.14%
-1.12%

Dec-12
Jan-13

1,688.95
1,627.55

0.93
0.92

4.85%
-3.64%

5.68%
-1.08%

Feb-13
Mar-13

1,637.63
1,671.63

0.86
0.88

0.62%
2.08%

-6.52%
2.33%

Apr-13
May-13

1,717.65
1,769.22

0.85
0.86

2.75%
3.00%

-3.41%
1.18%

Jun-13
Jul-13

1,773.54
1,772.62

0.81
0.83

0.24%
-0.05%

-5.81%
2.47%

Aug-13
Sep-13

1,727.58
1,768.62

0.78
0.82

-2.54%
2.38%

-6.02%
5.13%

Oct-13
Nov-13

1,806.85
1,812.72

0.84
0.80

2.16%
0.32%

2.44%
-4.76%

Dec-13
Variance
Covariance
Beta

1,866.96

0.86

2.99%
0.0010
0.0012
1.0995

7.50%
0.0118

From the calculation as shown above, the stock price of CCK Consolidated Holdings experienced
greater volatile than the stock market as the beta is greater than 1. The table above shows it is 9.95%
more volatile than the market. Since increased volatility of stock price indicates more risk to the investor,
investors should expect greater returns from the stock of CCK.

5.3

BETA FOR PETRONAS GAS BERHAD IN COMPARISON WITH KLSE

Table 15.0: KLSE and Petronas Gas Berhad
DATE

Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12

INDEX / PRICE
MONTHLY
KLSE
PET GAS
884.45
890.67
872.55
990.74
1,044.11
1,075.24
1,174.90
1,174.27
1,202.08
1,243.23
1,259.11
1,272.78
1,259.16
1,270.78
1,320.57
1,346.38
1,285.01
1,314.02
1,360.92
1,422.49
1,463.50
1,505.66
1,485.23
1,518.91
1,519.94
1,491.25
1,545.13
1,534.95
1,558.29
1,579.07
1,548.81
1,447.27
1,387.13
1,491.89
1,472.10
1,530.73
1,521.29
1,569.65

9.03
8.98
8.93
8.66
9.03
9.03
9.03
8.96
8.96
9.01
9.11
9.09
9.00
8.89
9.03
9.18
9.14
9.11
9.21
9.67
10.04
10.35
10.26
10.22
10.30
10.39
10.54
10.37
10.43
12.18
12.74
12.50
12.27
12.39
12.48
14.53
14.98
16.06

RATE RETURN
MONTHLY %
KLSE
0.70%
-2.03%
13.55%
5.39%
2.98%
9.27%
-0.05%
2.37%
3.42%
1.28%
1.09%
-1.07%
0.92%
3.92%
1.95%
-4.56%
2.26%
3.57%
4.52%
2.88%
2.88%
-1.36%
2.27%
0.07%
-1.89%
3.61%
-0.66%
1.52%
1.33%
-1.92%
-6.56%
-4.16%
7.55%
-1.33%
3.98%
-0.62%
3.18%

PET GAS
-0.55%
-0.56%
-3.02%
4.27%
0.00%
0.00%
-0.78%
0.00%
0.56%
1.11%
-0.22%
-0.99%
-1.22%
1.57%
1.66%
-0.44%
-0.33%
1.10%
4.99%
3.83%
3.09%
-0.87%
-0.39%
0.78%
0.87%
1.44%
-1.61%
0.58%
16.78%
4.60%
-1.88%
-1.84%
0.98%
0.73%
16.43%
3.10%
7.21%

Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Variance
Covariance
Beta

1,596.33
1,570.61
1,580.67
1,599.15
1,631.60
1,646.11
1,636.66
1,673.07
1,610.83
1,688.95
1,627.55
1,637.63
1,671.63
1,717.65
1,769.22
1,773.54
1,772.62
1,727.58
1,768.62
1,806.85
1,812.72
1,866.96

16.09
16.04
16.68
17.45
17.94
18.94
18.56
19.15
17.98
19.07
18.13
17.90
18.56
19.27
21.08
20.75
20.69
19.99
22.00
24.52
23.86
24.32

1.70%
-1.61%
0.64%
1.17%
2.03%
0.89%
-0.57%
2.22%
-3.72%
4.85%
-3.64%
0.62%
2.08%
2.75%
3.00%
0.24%
-0.05%
-2.54%
2.38%
2.16%
0.32%
2.99%
0.0010
0.0004
0.3900

0.19%
-0.31%
3.99%
4.62%
2.81%
5.57%
-2.01%
3.18%
-6.11%
6.06%
-4.93%
-1.27%
3.69%
3.83%
9.39%
-1.57%
-0.29%
-3.38%
10.06%
11.45%
-2.69%
1.93%
0.0019

From the calculation as shown above, the stock price of Petronas Gas Berhad experienced lower
volatile than the stock market as the beta is lower than 1. The table above shows it is 61.00% (1 0.39)
less volatile than the market. Since decreased volatility of stock price indicates lower risk to the investor
and safe to invest in the stock, investors should not expect great returns from the stock of Petronas Gas
Berhad.

5.4

BETA FOR AIR ASIA BERHAD IN COMPARISON WITH KLSE

Table 16.0: KLSE and Air Asia Berhad
DATE

INDEX / PRICE
MONTHLY
KLSE
AIR ASIA

RATE RETURN
MONTHLY %
KLSE

AIR ASIA

Jan-09

884.45

0.84

Feb-09
Mar-09

890.67
872.55

0.93
0.90

0.70%
-2.03%

10.71%
-3.23%

Apr-09
May-09

990.74
1,044.11

1.12
1.25

13.55%
5.39%

24.44%
11.61%

Jun-09
Jul-09

1,075.24
1,174.90

1.06
1.44

2.98%
9.27%

-15.20%
35.85%

Aug-09
Sep-09

1,174.27
1,202.08

1.31
1.34

-0.05%
2.37%

-9.03%
2.29%

Oct-09
Nov-09

1,243.23
1,259.11

1.29
1.22

3.42%
1.28%

-3.73%
-5.43%

Dec-09
Jan-10

1,272.78
1,259.16

1.32
0.84

1.09%
-1.07%

8.20%
-36.36%

Feb-10
Mar-10

1,270.78
1,320.57

0.93
0.90

0.92%
3.92%

10.71%
-3.23%

Apr-10
May-10

1,346.38
1,285.01

1.12
1.25

1.95%
-4.56%

24.44%
11.61%

Jun-10
Jul-10

1,314.02
1,360.92

1.06
1.44

2.26%
3.57%

-15.20%
35.85%

Aug-10
Sep-10

1,422.49
1,463.50

1.31
1.34

4.52%
2.88%

-9.03%
2.29%

Oct-10
Nov-10

1,505.66
1,485.23

1.29
1.22

2.88%
-1.36%

-3.73%
-5.43%

Dec-10
Jan-11

1,518.91
1,519.94

1.32
1.30

2.27%
0.07%

8.20%
-1.52%

Feb-11
Mar-11

1,491.25
1,545.13

1.38
1.33

-1.89%
3.61%

6.15%
-3.62%

Apr-11
May-11

1,534.95
1,558.29

1.29
1.17

-0.66%
1.52%

-3.01%
-9.30%

Jun-11
Jul-11

1,579.07
1,548.81

1.20
1.43

1.33%
-1.92%

2.56%
19.17%

Aug-11
Sep-11

1,447.27
1,387.13

1.61
2.16

-6.56%
-4.16%

12.59%
34.16%

Oct-11
Nov-11

1,491.89
1,472.10

2.37
2.54

7.55%
-1.33%

9.72%
7.17%

Dec-11
Jan-12

1,530.73
1,521.29

2.43
2.64

3.98%
-0.62%

-4.33%
8.64%

Feb-12
Mar-12

1,569.65
1,596.33

2.42
2.58

3.18%
1.70%

-8.33%
6.61%

Apr-12
May-12

1,570.61
1,580.67

2.75
2.86

-1.61%
0.64%

6.59%
4.00%

Jun-12
Jul-12

1,599.15
1,631.60

3.41
3.80

1.17%
2.03%

19.23%
11.44%

Aug-12
Sep-12

1,646.11
1,636.66

3.21
2.93

0.89%
-0.57%

-15.53%
-8.72%

Oct-12
Nov-12

1,673.07
1,610.83

3.77
3.57

2.22%
-3.72%

28.67%
-5.31%

Dec-12
Jan-13

1,688.95
1,627.55

3.65
3.44

4.85%
-3.64%

2.24%
-5.75%

Feb-13
Mar-13

1,637.63
1,671.63

3.54
3.34

0.62%
2.08%

2.91%
-5.65%

Apr-13
May-13

1,717.65
1,769.22

3.22
3.41

2.75%
3.00%

-3.59%
5.90%

Jun-13
Jul-13

1,773.54
1,772.62

3.50
3.67

0.24%
-0.05%

2.64%
4.86%

Aug-13
Sep-13

1,727.58
1,768.62

3.38
2.96

-2.54%
2.38%

-7.90%
-12.43%

Oct-13
Nov-13

1,806.85
1,812.72

2.97
2.80

2.16%
0.32%

0.34%
-5.72%

Dec-13
Variance
Covariance
Beta

1,866.96

2.69

2.99%
0.0010
0.0007
0.6876

-3.93%
0.0175

From the calculation as shown above, the stock price of Air Asia Berhad experienced lower
volatile than the stock market as the beta is lower than 1. The table above shows it is 31.24% (1 0.6876)
less volatile than the market. Since decreased volatility of stock price indicates lower risk to the investor
and safe to invest in the stock, investors should not expect great returns from the stock of Air Asia Berhad.

5.5

BETA FOR SARAWAK PLANTATION BERHAD IN COMPARISON WITH KLSE

Table 17.0: KLSE and Sarawak Plantation Berhad
DATE

INDEX / PRICE
MONTHLY
KLSE
SWK PLANT

RATE RETURN
MONTHLY %
KLSE

SWK PLANT

Jan-09

884.45

1.43

Feb-09
Mar-09

890.67
872.55

1.48
1.43

0.70%
-2.03%

3.50%
-3.38%

Apr-09
May-09

990.74
1,044.11

1.73
1.79

13.55%
5.39%

20.98%
3.47%

Jun-09
Jul-09

1,075.24
1,174.90

1.78
1.77

2.98%
9.27%

-0.56%
-0.56%

Aug-09
Sep-09

1,174.27
1,202.08

1.92
1.92

-0.05%
2.37%

8.47%
0.00%

Oct-09
Nov-09

1,243.23
1,259.11

1.91
1.89

3.42%
1.28%

-0.52%
-1.05%

Dec-09
Jan-10

1,272.78
1,259.16

1.83
1.90

1.09%
-1.07%

-3.17%
3.83%

Feb-10
Mar-10

1,270.78
1,320.57

1.86
1.84

0.92%
3.92%

-2.11%
-1.08%

Apr-10
May-10

1,346.38
1,285.01

1.87
1.73

1.95%
-4.56%

1.63%
-7.49%

Jun-10
Jul-10

1,314.02
1,360.92

1.70
1.76

2.26%
3.57%

-1.73%
3.53%

Aug-10
Sep-10

1,422.49
1,463.50

1.73
1.86

4.52%
2.88%

-1.70%
7.51%

Oct-10
Nov-10

1,505.66
1,485.23

2.07
2.16

2.88%
-1.36%

11.29%
4.35%

Dec-10
Jan-11

1,518.91
1,519.94

2.25
2.17

2.27%
0.07%

4.17%
-3.56%

Feb-11
Mar-11

1,491.25
1,545.13

2.05
2.14

-1.89%
3.61%

-5.53%
4.39%

Apr-11
May-11

1,534.95
1,558.29

2.07
2.01

-0.66%
1.52%

-3.27%
-2.90%

Jun-11
Jul-11

1,579.07
1,548.81

2.12
2.02

1.33%
-1.92%

5.47%
-4.72%

Aug-11
Sep-11

1,447.27
1,387.13

1.98
2.03

-6.56%
-4.16%

-1.98%
2.53%

Oct-11
Nov-11

1,491.89
1,472.10

2.01
2.08

7.55%
-1.33%

-0.99%
3.48%

Dec-11
Jan-12

1,530.73
1,521.29

2.08
2.70

3.98%
-0.62%

0.00%
29.81%

Feb-12
Mar-12

1,569.65
1,596.33

2.75
2.85

3.18%
1.70%

1.85%
3.64%

Apr-12
May-12

1,570.61
1,580.67

2.81
2.42

-1.61%
0.64%

-1.40%
-13.88%

Jun-12
Jul-12

1,599.15
1,631.60

2.55
2.67

1.17%
2.03%

5.37%
4.71%

Aug-12
Sep-12

1,646.11
1,636.66

2.84
2.55

0.89%
-0.57%

6.37%
-10.21%

Oct-12
Nov-12

1,673.07
1,610.83

2.48
2.50

2.22%
-3.72%

-2.75%
0.81%

Dec-12
Jan-13

1,688.95
1,627.55

2.57
2.38

4.85%
-3.64%

2.80%
-7.39%

Feb-13
Mar-13

1,637.63
1,671.63

2.47
2.51

0.62%
2.08%

3.78%
1.62%

Apr-13
May-13

1,717.65
1,769.22

2.49
2.64

2.75%
3.00%

-0.80%
6.02%

Jun-13
Jul-13

1,773.54
1,772.62

2.49
2.52

0.24%
-0.05%

-5.68%
1.20%

Aug-13
Sep-13

1,727.58
1,768.62

2.38
2.42

-2.54%
2.38%

-5.56%
1.68%

Oct-13
Nov-13

1,806.85
1,812.72

2.47
2.47

2.16%
0.32%

2.07%
0.00%

Dec-13
Variance
Covariance
Beta

1,866.96

2.53

2.99%
0.0010
0.0007
0.6787

2.43%
0.0042

From the calculation as shown above, the stock price of Sarawak Plantation Berhad experienced
lower volatile than the stock market as the beta is lower than 1. The table above shows it is 32.13%
(1 0.6787) less volatile than the market. Since decreased volatility of stock price indicates lower risk to
the investor and safe to invest in the stock, investors should not expect great returns from the stock of
Sarawak Plantation Berhad.

5.6

SUMMARY FOR BETA FOR EACH STOCK, BASED ON DATA 2009 2013

Stocks

Beta

Malayan Banking Berhad

CCK Consolidated Holdings Berhad
PETRONAS Gas Berhad
Air Asia Berhad
Sarawak Plantation Berhad

1.0768
1.0995
0.3900
0.6876
0.6787

Beta > 1
Beta < 1

Malayan Banking Berhad and CCK Consolidated Holdings Berhad generate beta above 1, thus
the stocks are more volatile than the stock market. Even though they are more risky, these two stocks
generally give higher return as well. Thus investors who would like to invest with these five stocks need
to consider their level of risk acceptance. If they expect to receive high return, they can consider
investing in Malayan Banking Berhad or CCK Consolidated Holdings Berhad. Otherwise, they should
invest in Petronas Gas Berhad, Air Asia Berhad and Sarawak Plantation Berhad which generate lower
return, but investors are more certain with the lower risk they face.

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