Explain your groupings and connectivity between good beta vs

Explain your groupings and connectivity between good beta vs. bad beta and growth stock vs. value stocks. Cite any sources you use in  your explanation.  

Solution

Answer

First you have to know what is beta A beta is a measure of risk Simply says the beta shows the changes in the value of the stock as per the changes in market. A beta shows the relation between the price fluctuation between security and market. A Good beta is a beta which is very close or nearest to value 1. We can say the beta is good when it is one as the correct change in market shows the similiar change in the price of the security value. While A bad beta is such which is very high or low or having a negative beta means inverse relation between the Security price fluctuations and market conditions. As we say direclty high beta high risk and low beta then low risk

A Value stock is a stock which is traded at the lower prices as compared to its fundamentals such as EPS dividend and many other profitability Ratios, A value stock is termed as a undervalued stock means whose value is undervalued as compared to its fair value. Value Stock means its shares are traded in the market at a price lower than the intrinsic value. While A Growth stock is such stock which has a very high chance of having a growth in the future as per its profitabilty And fundamentals . Simply we say growth companies ae such which has a proper potential of growth in future. A growth stock is a stock whose earnings is expected in future at higher than the average market rate. A value stock is mainly has more chance to grow as it is traded at undervalued.

The sources of explanation are my self study and SEBI site and books of Strategic financial management