Hello John,
From you lectures and notes, I've managed to understand systematic and unsystematic risk and the problem that arises with systematic risk. However regarding Beta factor, I am still having some difficulties to interpret it. I mean when we say that Beta factor is 1; what are we actually saying here?
Thanks
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Beta Factor
5y ago#1f the beta factor is 1 then it means that the share has the same risk as the average of the stock exchange (the market) as a whole.
See page 100 of the lecture notes :-)
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