Asked by Robin Jolly on Jul 01, 2024
For a stock with beta equal to 1.5 signifies that the stock has 50% more systematic risk than the average stock.
Systematic Risk
Market-wide or market segment-specific dangers that cannot be eliminated by diversifying one's investment portfolio.
Beta
Beta is a measure of a stock's volatility in relation to the overall market, indicating the stock's risk level compared to the market average.
- Grasp the principle of beta and its relevance in determining systematic risk.
Learning Objectives
- Grasp the principle of beta and its relevance in determining systematic risk.