Investment Risk and Beta

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A 3 page paper discussing beta and investment. Beta is a term found on all web pages providing quotes of individual stocks. Often thought of as a measure of risk of the stock, it does not directly reflect risk at all. It is an integral component of the capital asset pricing model (CAPM), which is used to place a value on assets. The purpose here is to investigate beta and what it means to the individual investor. The reference company is McDonald's; other companies used for example purposes are IBM and Microsoft. Bibliography lists 5 sources.