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Which Beta (β) Value make attractive a Security in the market?

1. one

2. two

3. less than one

4. greater than one

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Question added by Muhammad Aamir Ayaz , Accounts Executive , Kanzo Ag
Date Posted: 2015/10/02
Deleted user
by Deleted user

Beta value can be measured for securities individually, but whether it is risky (profitable) or not is not based totally on how an investor will react to the market. 

Any stock or investment by itself has a beta value of 1.0, and compare it to the market will give either a higher than 1.0 or less than 1.0. 

A beta value of >1.0 means high risk, thus higher return. 

A beta value of <1.0 means low risk, thus lower return. 

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