Beta and Risk
If you are relatively risk adverse, would you require a higher beta stock to induce you to invest than the beta required by a person more willing to take risks? Explain.
From the investment instruments in the simulation, is it possible to construct a portfolio that is risk free? Explain.
https://brainmass.com/business/capital-asset-pricing-model/beta-and-risk-27346
Solution Summary
Answers 2 questions:
1) Would a person require a higher beta stock to induce him/her to invest than the beta required by a person more willing to take risks?
2) Is it possible to construct a portfolio that is risk free?
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