Unformatted text preview: returns • It’s a measure of the “sensitivity” of an individual stocks return The markets Beta is 1 • A firm that has a beta =1 has average market risk. The stock is no more or less volatile than the market • A firm with a beta 1 is maor evolatile than the market • A firm with a beta < 1 is less volatile than the market. Band- a contrack that has two parts: Coupon rate & maturity...
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- Summer '11
- Finance, individual stocks, Company Unique risk, individual stocks returns, portfolio companyunique risk, individual stocks return