Question
Con-Agra is one of the worlds largest packaged foods companies. Take a look at it: CAG (NYSE). What does the beta tell you about Con-Agra?
Con-Agra is one of the worlds largest packaged foods companies. Take a look at it: CAG (NYSE). What does the beta tell you about Con-Agra? (Hint: Risk and Beta)
[1] What is beta, how is it calculated, why is it relevant (or where it is not)?
[2] How relevant do you feel it is with respect to Con-Agra? What does it tell you about Con-Agra?
[3] Would your answer be different if the question was not about Con-Agra but instead, was about Lyft (LYFT) (NASDAQ)?
[4] What kinds of risks are there with respect to Con-Agra (in terms of systematic and non-systematic risk)?
[5] What kinds of risks are there with respect to Lyft (in terms of systematic and non-systematic risk) that makes it different from Con-Agra?
[6] With that in mind, do you think the beta is a good reflection or not to invest in Con-Agra? How about for Lyft? You can address this in the context of the Efficient Market Hypothesis if you want.
[7] Bonus: Anything else worry you (or not) about Con-Agra or Lyft? (Finance related factors).
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