21st FINANCIAL MANAGEMENT CONFERENCE


18 - 20 November 2020 - Kolobrzeg, Poland

PL
Uniwerystet Szczeciński Faculty of Economics and Management MBA Stowarzyszenie Absolwentów

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Beta Prize

Beta is an honor distinction of exceptional achievements in financial management area. 37-centimeneters statue was designed and made in the workshop of an outstanding sculptor Jakub Lewiński. It is a dynamic spatial form, in which interpenetrating graphic symbol of the second letter of Greek alphabet and artistic shape of a beautiful women’s silhouette were contained. Forged in bronze on the base of black granite, it symbolizes one of the greatest civilization’s values: dynamism, development, expansion and beauty.

Why beta ratios are important? Why economists focus so much attention on them? Beta ratio is a measure of the relation existing between changes in price of a given stock and changes of the corresponding index of stock market. It enables measuring of systematic risk taken by an investor who is buying this stock and it gives knowledge about how the movements of the price of this stock is in convergence with the market. It is important, because although investors can balance specific risk combined with given stocks by having a diversified portfolio, they still are exposed to a systematic risk connected to the whole of the market, which cannot be balanced by diversification. The higher the beta ratio of a given stock, the higher risk is connected to it. The measurement of risk is only one of the ways of using beta. Indirectly, this ratio is an indispensable measure in business valuation process, choosing investment projects and measuring economic add-on value. 

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