1- Introduction

2- Empirical mode
CAPM include literature
capital assets pricing model
3-Data descriptive statistics
4-Analysis and methodology
gather data
sorting data
draw graph
5-Results
interpreting beta
6-Conclusion
report
practical application
7-References
use citation

8-Appendix
Introduction
Trading Name:
samba
Company Activities
Samba is a leading financial services group in the
Kingdom of Saudi Arabia, providing world class
services to meet the financial needs of its private,

corporate and institutional customers in the Kingdom

of Saudi Arabia, Pakistan, Dubai and the United
Kingdom. Its strong suite of comprehensive and
integrated conventional and Shariah-compliant
financial products and services as well as financial
advisory services has propelled Samba to the top tier
of Saudi Financial institutions. The Bank aims to
invest in its staff, reinforce its social responsibility
and maximize its shareholders returns. Samba was
the first Bank in Saudi Arabia to offer Priority Banking
(Gold and Diamond), Phone Banking, ATMs and Cash
Deposit through ATMs, Debit Cards, Charge Cards,
Islamic Credit Cards, Co-Branded Credit Cards, AlKhair
Credit Cards for ladies, Murabaha-Based Cash
Financing, Phone Banking, Leasing (Ijarah), Foreign
Exchange Derivatives, Interest Rate Derivatives,
Credit Shield Insurance, and Automated Signature
Verification
Company History
Samba Financial Group was formed pursuant to the
Royal Degree dated 26/03/1400H (corresponding to
12/02/1980G), and commenced business on
29/08/1400H (corresponding to 12/07/1980G). The
Bank operates under Commercial Registration No.
1010035319, issued on 06/02/1401 (corresponding to
13/12/1980H). Samba enjoys an extensive network of
branches in Saudi Arabia as well as its branches in
the UK, Pakistan and Dubai. The Bank adopts a
strategy of expansion in the regional markets. The
Banks Capital, according to the resolution of the
Extraordinary Shareholders Meeting On March 5,
2008, is SR 9,000,000,000 divided into 900,000,000
shares of equal nominal value of ten Saudi Riyals.
Date Established
1980/02/12
Financial Year End
31/12

External Auditors
Ernst & Young CO
ALJURAID & CO
The objective of the work is calculating the beta for
for samba which is a measure of the sensitivity of the
Samba share for a change in the Saudi stock market
index . the higher the beta , the higher sensitivity
with no change with increased risk and called
systmatic risk
Beta is also referred to as financial elasticity or
correlated relative volatility, and can be referred to
as a measure of the sensitivity of the asset's returns
to market returns, its non-diversifiable risk, its
systematic risk, or market risk. On an individual asset
level, measuring beta can give clues to volatility and
liquidity in the marketplace. In fund management,
measuring beta is thought to separate a manager's
skill from his or her willingness to take risk.

4-Analysis and methodology

gather data
sorting data
draw graph

Analysis of the data

Beta is calculated by collecting data to share closing
prices and the closure of Samba Saudi market for the
period from 1 \ 1 \ 2012 to 25 \ 03 \ 2012 has been
made to the Excel file to calculate the return and
averages and variance and standard deviation of the
data

The following is the graph for return on samba and

tasi within the period

4.00%
3.00%

samba

1.00%
12/03/2012

05/03/2012

27/02/2012

20/02/2012

13/02/2012

06/02/2012

30/01/2012

23/01/2012

16/01/2012

-2.00%

09/01/2012

-1.00%

02/01/2012

0.00%

tasi

-3.00%
date

While cov( ) = (r-r^)*(r-r^)/n-1

Which mean covariance between samba and tasi
index
R is return for samba and tasi

19/03/2012

retutn

2.00%

R^ is average return for the samba and the market

N is number of period
Var is variance of the tasi index market
And we can calculate beta by the follwing function
SLOPE(C4:C62;P4:P62)
And we can calculate beta by capm
While
ke is required return for the market
rm is average return on the market
rf is risk free return

Results
By using the

b= 1.08266
by using
SLOPE(C4:C62;P4:P62)
b= 1.08266
which mean the higher the tasi 1% the higher the
samba stock 1.08266%
and
the lower the tasi 1% the lower the samba stock
1.08266%
so the lower beta the lower risk

Conclusion
Higher-beta stocks tend to be more volatile and
therefore riskier, but provide the potential for higher
returns. Lower-beta stocks pose less risk but
generally offer lower returns. Some have challenged
this idea, claiming that the data show little relation
between beta and potential reward, or even that
lower-beta stocks are both less risky and more
profitable (contradicting CAPM).
With samba stock beta is lower which is equal
1.08266 and so there are low risk with the share
References
http://www.mubasher.info/
http://www.tadawul.com.sa
http://www.argaam.com/Portal/Default.aspx
http://www.samba.com/ENGLISH/INDEX_01_01_en.html

http://www.statistics-help-online.com/node76.html
Appendix
average
varaince
standerd
devation

0.20%
0.0001
3
0.0113
3

average

aver
age
date
01/01/2012

samba
close

r%

r^

0.20
%
(rr^)^
2

46.5

02/01/2012

46.2

03/01/2012

46.2

04/01/2012

45.8

07/01/2012

45.4

n=

varaince
standerd
devation

0.31%
0.0032
0%
0.5653
6%

b=
or b
=
aver
age

59
0.000
03
1.082
66
1.082
66
0.31
%

tasi close

r%

r^

(r-r^)

cov=

(r-r^)(rr^)

6,386.04
0.65
%
0.00
%
0.87
%
0.87
%

0.20
%
0.20
%
0.20
%
0.20
%

0.85
%
0.20
%
1.07
%
1.08
%

6,398.72

0.20%

0.31
%

6,413.88

0.24%

0.31
%

6,407.87

0.09%

0.31
%

0.12
%
0.08
%
0.41
%

6,452.38

0.69%

0.31
%

0.38
%

0.00098
%
0.00016
%
0.00436
%
0.00410
%

08/01/2012

45.5

0.22
%

0.20
%

09/01/2012

45.5

0.00
%

0.20
%

10/01/2012

45.6

0.22
%

0.20
%

11/01/2012

45.6

0.20
%

14/01/2012

45.4

0.00
%
0.44
%

15/01/2012

45.4

0.20
%

16/01/2012

44.8

17/01/2012

44.7

18/01/2012

43.9

0.00
%
1.32
%
0.22
%
1.79
%

21/01/2012

44.5

1.37
%

0.20
%

22/01/2012

44.5

0.20
%

23/01/2012

44.3

0.00
%
0.45
%

24/01/2012

44.9

0.20
%

25/01/2012

44.6

28/01/2012

44.5

1.35
%
0.67
%
0.22
%

29/01/2012

44.5

0.00
%

0.20
%

1.15
%
0.87
%
0.43
%
0.20
%

30/01/2012

44.8

0.67
%

0.20
%

31/01/2012

45.2

0.89
%

01/02/2012

46.7

04/02/2012

0.08
%
0.72
%

0.00001
%

0.23
%
0.16
%
0.18
%
0.35
%
1.42
%
1.10
%
0.19
%

0.00004
%

1.04
%
0.52
%
0.16
%
0.22
%
0.15
%

0.01206
%

6,467.61

0.24%

0.31
%

6,441.62

0.40%

0.31
%

6,476.60

0.54%

0.31
%

6,486.41

0.15%

0.31
%

6,494.77

0.13%

0.31
%

6,492.40

0.04%

0.31
%

6,420.89

1.10%

0.31
%

6,370.16

0.79%

0.31
%

6,377.99

0.12%

0.31
%

6,464.17

1.35%

0.31
%

6,450.58

0.21%

0.31
%

6,460.55

0.15%

0.31
%

6,466.54

0.09%

0.31
%

6,476.86

0.16%

0.31
%

6,537.12

0.93%

0.31
%

6,554.77

0.27%

0.31
%

0.47
%

6,560.25

0.08%

0.31
%

0.62
%
0.04
%
0.23
%

0.20
%

0.69
%

6,626.04

1.00%

0.31
%

0.69
%

0.00475
%

3.32
%

0.20
%

3.11
%

6,663.48

0.57%

0.31
%

0.25
%

0.00782
%

48

2.78
%

0.20
%

2.58
%

6,733.68

1.05%

0.31
%

0.74
%

0.01908
%

05/02/2012

48.1

0.21
%

0.20
%

0.00
%

6,758.87

0.37%

0.31
%

06/02/2012

48.2

0.21
%

0.20
%

0.00
%

6,738.91

0.30%

0.31
%

07/02/2012

48.5

0.62
%

0.20
%

0.42
%

6,743.55

0.07%

0.31
%

0.06
%
0.61
%
0.24
%

0.00000
%
0.00002
%
0.00102
%

08/02/2012

50

3.09
%

0.20
%

2.89
%

6,797.09

0.79%

0.31
%

0.48
%

0.01387
%

0.20
%

0.20
%
0.20
%
0.20
%

0.20
%

0.20
%
0.20
%

0.02
%
0.20
%
0.02
%
0.20
%
0.64
%
0.20
%
1.53
%
0.43
%
1.99
%
1.16
%
0.20
%
0.65
%

0.00146
%

0.00033
%
0.00119
%
0.00071
%
0.02159
%
0.00472
%
0.00381
%

0.00107
%
0.00104
%
0.00254
%
0.00135
%
0.00264
%
0.00009
%
0.00108
%

11/02/2012

49.5

12/02/2012

49.1

13/02/2012

49.1

14/02/2012

48.9

15/02/2012

48.5

18/02/2012

48.3

19/02/2012

48.5

20/02/2012

1.00
%
0.81
%

0.20
%
0.20
%

1.20
%
1.01
%
0.20
%
0.61
%
1.02
%
0.62
%

0.21
%
0.33
%

6,804.03

0.10%

0.31
%

0.00255
%

6,802.94

0.02%

0.31
%

6,831.56

0.42%

0.31
%

6,816.49

0.22%

0.31
%

6,811.97

0.07%

0.31
%

6,830.31

0.27%

0.31
%

0.11
%
0.53
%
0.38
%
0.04
%

6,869.95

0.58%

0.31
%

0.27
%

6,904.38

0.50%

0.31
%

0.19
%

0.00056
%
0.00231
%

0.00334
%
0.00022
%

0.00
%
0.41
%
0.82
%
0.41
%

0.20
%

0.20
%

48

0.41
%
1.03
%

0.20
%

0.21
%
1.23
%

21/02/2012

49.1

2.29
%

0.20
%

2.09
%

6,966.73

0.90%

0.31
%

0.59
%

0.01230
%

22/02/2012

49.9

1.63
%

0.20
%

1.43
%

7,031.26

0.93%

0.31
%

0.61
%

0.00873
%

25/02/2012

50.25

0.70
%

0.20
%

0.50
%

7,120.40

1.27%

0.31
%

26/02/2012

51

1.49
%

0.20
%

1.29
%

7,133.09

0.18%

0.31
%

0.95
%
0.14
%

0.00474
%
0.00175
%

27/02/2012

51.75

0.20
%

0.86%

0.31
%

7,214.06

0.27%

0.31
%

0.55
%
0.04
%

0.00696
%

51.25

1.27
%
1.17
%

7,194.70

28/02/2012

1.47
%
0.97
%

29/02/2012

52.25

0.20
%

0.80%

0.31
%

0.49
%

52

7,336.21

0.89%

0.31
%

51.5

7,351.28

0.21%

0.31
%

05/03/2012

50.75

7,353.79

0.03%

0.31
%

0.57
%
0.11
%
0.28
%

0.00851
%
0.00390
%

04/03/2012

06/03/2012

50.75

0.20
%

7,399.87

0.63%

0.31
%

07/03/2012

50.5

0.00
%
0.49
%

0.20
%

1.75
%
0.68
%
1.17
%
1.66
%
0.20
%
0.70
%

7,271.82

03/03/2012

1.95
%
0.48
%
0.96
%
1.46
%

7,374.92

0.34%

0.31
%

0.31
%
0.65
%

10/03/2012

51

0.99
%

0.20
%

0.79
%

7,481.27

1.44%

0.31
%

1.13
%

0.00887
%

11/03/2012

51.25

0.49
%

0.20
%

7,533.74

0.70%

0.31
%

51.25

0.20
%

7,539.70

0.08%

0.31
%

13/03/2012

50.5

0.00
%
1.46
%

7,521.60

0.24%

0.31
%

0.39
%
0.23
%
0.55
%

0.00111
%

12/03/2012

0.29
%
0.20
%
1.67
%

0.20
%
0.20
%
0.20
%

0.20
%

0.20
%
0.20
%
0.20
%

0.20
%

0.00327
%
0.00388
%
0.00027
%

0.00052
%

0.00126
%
0.00464
%
0.00064
%
0.00454
%

0.00048
%
0.00924
%

14/03/2012

51.5

1.98
%

0.20
%

1.78
%

17/03/2012

51.75

0.49
%

0.20
%

18/03/2012

51.75

0.00
%

0.20
%

0.28
%
0.20
%

19/03/2012

52

0.20
%

20/03/2012

51.75

21/03/2012

51.5

0.48
%
0.48
%
0.48
%

0.20
%

0.28
%
0.68
%
0.69
%

24/03/2012

52.25

1.46
%

0.20
%

1.25
%

0.20
%

7,567.98

0.62%

0.31
%

0.30
%

0.00538
%

7,600.57

0.43%

0.31
%

0.00033
%

7,615.69

0.20%

0.31
%

7,616.01

0.00%

0.31
%

7,518.66

1.28%

0.31
%

7,540.27

0.29%

0.31
%

0.12
%
0.11
%
0.31
%
1.59
%
0.03
%

7,675.61

1.79%

0.31
%

1.48
%

0.01855
%
0.20071
%

0.00023
%
0.00086
%
0.01090
%
0.00018
%