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For this week you will need to read page 343 Finance Matters. What is the beta...

For this week you will need to read page 343 Finance Matters. What is the beta of the company you work for, or previously worked for? If you don't have one then chose a company near you that you are familiar with. Now chose a company with a greater beta and one with a lower bata. What do you think about difference between the three companies? If you were a company what do you think your Beta would be and why?

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In finance, the Beta of an investment is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors. It is the measure of systamatic riks which based on several external factors of the compnay. It indicates that high beta of the  company has high risk so one can expect high risk premium vice versa.

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