Question: Explain the rationale behind using beta as a measure of risk. Compute the companys beta based on the divisional betas and compare it with that

Explain the rationale behind using beta as a measure of risk. Compute the companys beta based on the divisional betas and compare it with that provided by ValueLine and Merrill Lynch. Explain some of the inconsistencies that can be found in reported betas. Do historical betas provide good measures of the future riskiness of firms (or divisions)?Explain the rationale behind using beta as a measure of risk. Compute the companys beta based on the divisional betas and compare it with that provided by ValueLine and Merrill Lynch. Explain some of the inconsistencies that can be found in reported betas. Do historical betas provide good measures of the future riskiness of firms (or divisions)?

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