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What is an appropriate portfolio beta for person who is highly averse to risk?

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If someone were highly averse to risk, what type of beta would he or she be interested in when researching a company to add to an investment portfolio? Give an example and provide references on this topic. Consider the array of resources identified as materials for this course as options.

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This solution explains the application of CAPM and Beta in 200 words and two references in an attached Word document.

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BETA COEFFICIENT FOR A RISK AVERSE INVESTOR

The beta coefficient is the relative measure of nondiversifiable risk. It is an index of the degree of movement of an asset's return in response to a change in market return (Gitman, 2006). An asset (e.g. a particular stock) return is determined through using ...

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Elisa Valdez, PhD
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  • Bachelor of Science in Business Administration, University of the Philippines
  • Master in Business Administration, Saint Mary's University
  • Doctor of Philosophy in Education, University of the Philippines
  • Doctor in Business Adminstration (IP), Polytechnic University of the Philippines
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