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Examine the concept of Beta in finance and discuss its role in assessing the risk of an investment. How does Beta relate to market movements
Examine the concept of Beta in finance and discuss its role in assessing the risk of an investment. How does Beta relate to market movements and what does it signify about an asset's volatility relative to the market? Additionally, explore the use of probabilities in financial modeling and risk assessment. How might understanding the probabilities of different outcomes complement the insights provided by Beta? In what contexts might one be more informative than the other for making investment decisions?
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