Posted: September 21st, 2016
In the Capital Asset Pricing Model (CAPM) why do we use beta ß, rather than standard deviation of returns, as our measure of risk?
In the Capital Asset Pricing Model (CAPM) why do we use beta ß, rather than standard deviation of returns, as our measure of risk? Why is it that the formula for beta fits in with the meaning of beta as non-diversitifiable risk?
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.