- Study guides, Class notes & Summaries

1.                Describe what it means for a company or security to have a beta greater than 1.  It indicates that the company or security is more volatile than the overall market.  It shows that the company or security has a fixed return rate.  It suggests the company or security has stable returns.  It means the company or security is less risky than the market.   2.                  Why is the risk-free rate considered a benchmark for eva...