Volatility increases in Pre liberalization period (Reason - Markets inefficient) Beta is lower in the pre liberalization period (Logic - ?) Let me know if I have misunderstood anything Thanks…
Volatility of what? In pre liberalization period your market is not integrated with world markets -> correlation with world markets and beta are low
vol of cap flows are lower pre lib then post lib
consumption is less volatile post liberalization
hmm, i thought evidence shows that consumption does not change
tanyusha Wrote: ------------------------------------------------------- > hmm, i thought evidence shows that consumption > does not change i think i read something along those lines in CFAI… cant recall
consumption volatility has beed found to decrease post liberalization according to schweser
I meant standard deviation… but i guess i understand my question on beta from ur post… Thanks so much! tanyusha Wrote: ------------------------------------------------------- > Volatility of what? > > In pre liberalization period your market is not > integrated with world markets -> correlation with > world markets and beta are low