Beta Factor

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February 2, 2021 at 5:41 pm #608878
adarsh1997
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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
February 3, 2021 at 8:55 am #608925
John Moffat
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f 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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