A beta factor represents risk in a financial instrument or commodity. The risk involved here is...

 

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A beta factor represents risk in a financial instrument or commodity. The risk involved here is volatility risk, which will give you an understanding of how the security is expected to move in the market. Understanding volatility can help you build portfolios that will meet investment goals. • Explain the reasons for changes in beta and explain how one would use positive and negative betas to build a portfolio. Be sure to reference volatility. • Please provide an example of negative beta. Your initial discussion post must include one outside resource, which may include the Internet or Library, and must be cited according to current APA formatting. A beta factor represents risk in a financial instrument or commodity. The risk involved here is volatility risk, which will give you an understanding of how the security is expected to move in the market. Understanding volatility can help you build portfolios that will meet investment goals. • Explain the reasons for changes in beta and explain how one would use positive and negative betas to build a portfolio. Be sure to reference volatility. • Please provide an example of negative beta. Your initial discussion post must include one outside resource, which may include the Internet or Library, and must be cited according to current APA formatting.

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Beta is a measure of a financial instruments or commoditys volatility or systematic risk in relation to the broader market A beta value greater than 1 ... View the full answer