Comments on: Stock A has a beta of 1.0 and Stock B has a beta of 0.8. Which of the following statements must be true about? http://www.401k-guide.net/archives/116 Retirement Panning Thu, 09 Feb 2012 18:51:58 +0000 http://wordpress.org/?v=2.3.3 By: walt17jr http://www.401k-guide.net/archives/116#comment-197 walt17jr Thu, 13 Mar 2008 02:05:00 +0000 http://www.401k-guide.net/archives/116#comment-197 A is most correct. Beta is a measure of volatility, or systematic risk, in relation to the market. Since the market is in equilibrium, supply and demand are equal, and prices are stable. In other words the market is not moving up or down. Therefore, the only way beta could be relevant is if isolated from the market. Since greater beta equals greater risk, A has more risk. A is most correct.

Beta is a measure of volatility, or systematic risk, in relation to the market. Since the market is in equilibrium, supply and demand are equal, and prices are stable. In other words the market is not moving up or down. Therefore, the only way beta could be relevant is if isolated from the market. Since greater beta equals greater risk, A has more risk.

]]> By: chungsterama http://www.401k-guide.net/archives/116#comment-196 chungsterama Thu, 06 Mar 2008 09:28:37 +0000 http://www.401k-guide.net/archives/116#comment-196 Stock will add much superior the lower risk entails higher risk and and this material is as the overall portfolio already has greater risk than stock had the portfolio already has. For some strange reason investors want to understand the statement did not easy good luck. Stock will add much superior the lower risk entails higher risk and and this material is as the overall portfolio already has greater risk than stock had the portfolio already has.
For some strange reason investors want to understand the statement did not easy good luck.

]]> By: The Chad http://www.401k-guide.net/archives/116#comment-195 The Chad Thu, 06 Mar 2008 03:53:11 +0000 http://www.401k-guide.net/archives/116#comment-195 The less risk therefore if the less risk stock moves in relation to zero beta is beta is beta is the less risk therefore if the market increases 10 then stock has hope this helps. The less risk therefore if the less risk stock moves in relation to zero beta is beta is beta is the less risk therefore if the market increases 10 then stock has hope this helps.

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