(a) You are considering investing in one of two shares. The first has a beta of...
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(a) You are considering investing in one of two shares. The first has a beta of 1.6. The second has a beta of -2 (a negative number!). Explain in detail how you can use this information to make a decision about which share to invest in 2022, and explain what is meant by a stock with a beta value of -2. (5 marks) (a) You are considering investing in one of two shares. The first has a beta of 1.6. The second has a beta of -2 (a negative number!). Explain in detail how you can use this information to make a decision about which share to invest in 2022, and explain what is meant by a stock with a beta value of -2. (5 marks)
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Beta is a measure of the volatility of a stock compared to the overall market It tells us how much t... View the full answer
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