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2. Comment on the following quotation from a leading investment analyst. "Stocks that move perfectly with the market have a beta of 1. Betas get higher as volatility goes up and lower as it goes down. Thus, Southern Co., a utility whose shares have traded close to $12 for most of the past three years has a low beta. At the other extreme, there is Texas Instruments, which has been as high $150 and as low as $75 and has a high beta."

2. Comment on the following quotation from a leading investment analyst. "Stocks that move perfectly with the market have a beta of 1. Betas get higher as volatility goes up and lower as it goes down. Thus, Southern Co., a utility whose shares have traded close to $12 for most of the past three years has a low beta. At the other extreme, there is Texas Instruments, which has been as high $150 and as low as $75 and has a high beta."

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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2. Comment on the following quotation from a leading investment analyst. "Stocks that move perfectly with the market have a beta of 1. Betas get higher as volatility goes up and lower as it goes down. Thus, Southern Co., a utility whose shares have traded close to $12 for most of the past three years has a low beta. At the other extreme, there is Texas Instruments, which has been as high $150 and as low as $75 and has a high beta."
Transcribed Image Text:2. Comment on the following quotation from a leading investment analyst. "Stocks that move perfectly with the market have a beta of 1. Betas get higher as volatility goes up and lower as it goes down. Thus, Southern Co., a utility whose shares have traded close to $12 for most of the past three years has a low beta. At the other extreme, there is Texas Instruments, which has been as high $150 and as low as $75 and has a high beta."
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