Thread: Cost of equity
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Old 11-28-2005, 06:07 PM
Evan Evan is offline
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Join Date: Jun 2004
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Default Re: Cost of equity

You already kind of said this, but I'll reitterate it; beta is not a metric of risk in the sense most people might think. It measures unsystematic risk that cannot be diversified away. Those are NOT the same thing. Companies with low betas being risky isn't really the oxymoron many people think it is.
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