In the context of finance, the term 'beta' refers to

the process of simultaneous buying and selling of an asset from different platforms

an investment strategy of a portfolio manager to balance risk versus reward

a type of systemic risk that arises where perfect hedging is not possible

a numeric value that measures the fluctuations of a stock to changes in the overall stock market.

Correct Answer : a numeric value that measures the fluctuations of a stock to changes in the overall stock market.

Note : * In the context of finance, the term ‘beta’ refers to a measure of how an individual asset moves (on average) when the overall stock market increases or decreases. It is used as a measure of risk and is an integral part of the Capital Asset Pricing Model (CAPM). A company with a higher beta has greater risk and also greater expected returns. The beta coefficient can be interpreted as follows:

* β =1 exactly as volatile as the market

* β >1 more volatile than the market

* β <1>0 less volatile than the market

* β =0 uncorrelated to the market

* β <0 negatively correlated to the market2

* The beta coefficient can be calculated by dividing the product of the covariance of the security’s returns and the market’s returns by the variance of the market’s returns over a specified period

* A type of systemic risk that arises where perfect hedging is not possible is called basis risk.

* An investment strategy of a portfolio manager to balance risk versus reward is called asset allocation.

* The process of simultaneous buying and selling of an asset from different platforms, exchanges or locations to cash in on the price difference is called arbitrage.

* A numeric value that measures the fluctuations of a stock to changes in the overall stock market is called beta. Hence, option (d) is correct.

Year : 2023

Category : General Studies

About Ethics Committee :

* This committee was constituted in Rajya Sabha in 1997 and in Lok Sabha in 2000. It enforces the code of conduct of members of Parliament. It examines the cases of misconduct and recommends appropriate action. Thus, it is engaged in maintaining discipline and decorum in Parliament.

* It is the only committee that probes lay citizen's complaints against lawmakers of the Lok Sabha.

History of Ethics Committee in LokSabha :

* In the case of Lok Sabha, a study group of the House Committee of Privileges, after visiting Australia, the UK, and the US in 1997 to look into practices pertaining to the conduct and ethics of legislators, recommended the constitution of an Ethics Committee, but it could not be taken up by Lok Sabha.

* The Committee of Privileges finally recommended the constitution of an Ethics Committee during the 13th Lok Sabha. The late Speaker, G M C Balayogi, constituted an ad hoc Ethics Committee in 2000, which became a permanent part of the House only in 2015. Hence, statement 1 is correct.

Procedure for Complaints :

* Initially, there was a provision under the rules of the Ethics Committee that allowed any Indian citizen to file a complaint against a lawmaker.

* But, in 2014, a sub-committee suggested that such a provision would allow any political rival to lodge complaints against a lawmaker on flimsy grounds. The rule was then modified to the extent that a complaint had to be submitted to the panel through a lawmaker.

* Till then, any person can complain against a Member through another Lok Sabha MP, along with evidence of the alleged misconduct, and an affidavit stating that the complaint is not “false, frivolous, or vexatious”. If the Member himself complains, the affidavit is not needed. Hence, statement 2 is not correct.

* However, the committee does not entertain complaints solely based on media reports or matters currently under judicial review. Hence, statement 3 is correct

Hence, option C is correct.

Source : Rajyasabha, Indianexpress, Indianexpress, Business Standard

Year : 2024

Category : General Studies

The longest border between any two countries in the world is between:

Canada and the United States of America

Chile and Argentina

China and India

Kazakhstan and Russian Federation

Correct Answer : Canada and the United States of America

Note : * Canada and the United States share the longest international border in the world, spanning a massive 8,890 kilometres. Hence, option (a) is correct.

* In comparison, the Russia-Kazakhstan border measures 6,846 kilometres, and the Chile-Argentina border measures 5,308 kilometres.

* India shares 3488 Km of border with China that runs along the States of Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Sikkim and Arunachal Pradesh.

Source :

International perspective

MHA