Consider the following quotation from a leading investment manager: The shares of Southern Co. have traded close
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Consider the following quotation from a leading investment manager: “The shares of Southern Co. have traded close to $12 for most of the past three years. Since Southern’s stock has demonstrated very little price movement, the stock has a low beta. Texas Instruments, on the other hand, has traded as high as $150 and as low as its current $75. Since TI’s stock has demonstrated a large amount of price movement, the stock has a very high beta.” Do you agree with this analysis? Explain.
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Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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