1. What is beta? What does it represent? Explain to an unsophisticated how to interpret beta. Also explain to this individual the pluses and minuses of beta in terms of measuring risk. 
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3. Compare and contrast the assessment of risk of a publicly listed stock using beta and ^VIX. Which one is superior in measuring risks? 
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5. Explain. What is the hurdle rate? How would it compare to beta? Would it move higher as beta moves higher?

Answer rating: 100% (QA)

Beta is a measure of a stocks volatility compared to the overall market If a stock has a beta of 1 i... View the full answer