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Consider the following quotation from a leading investment manager.: The shares of Western Co. have traded close to $12 for most of the past three
Consider the following quotation from a leading investment manager.: The shares of Western Co. have traded close to $12 for most of the past three years. Since Westerns stock has demonstrated very little price movement, the stock has a low beta. Ultra Instruments, on the other hand, has traded as high as $150 and as low as its current $75. Since UIs stock has demonstrated a large amount of price movement, the stock has a very high beta. Do you agree with this analysis? Critically explain your answer.
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