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Beta Equity

BillyBilly11y ago
Hello SIr, just a small clarification If Beta Equity is more than 1 for a particular project, does this always mean that the riskiness of the new project is more responsive to changes in market (will fluctuate more than normal) and less than 1, indicating the opposite ??
John MoffatJohn MoffatTutor11y ago#1
Yes - >1 means that it fluctuates more than the average (the market) and is more risky. Less than 1 means that it fluctuates less than the market and is less risky.
BillyBilly11y ago#2
thank you !! :D
John MoffatJohn MoffatTutor11y ago#3
You are welcome :-)
DDushyan11y ago#4
John Business risk is another name for unsystematic risk ?
John MoffatJohn MoffatTutor11y ago#5
No - for systematic risk! I do suggest you watch the free lecture on CAPM.
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