Beta is a common measure of a firm's risk relative.To the market and is the central factor

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Beta is a common measure of a firm's risk relative.To the market and is the central factor in the Capital Asset Pricing Model. From your research, what are the benefits of using beta to measure risk?

What is one of the potential flaws of this measure?

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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Posted Date: Jul 18, 2023 01:12 AM

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Beta is a common measure of a firm's risk relative.To the market and is the central factor

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Beta is a metric that measures a companys volatility relative to the overall market It is a useful t... View the full answer

Foundations of Financial Management

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