#11
|
|||
|
|||
Re: Cost of equity
[ QUOTE ]
[ QUOTE ] Okay, in general it may be true, but not often enough to make the blanket statement that indices are less risky than stocks. The beta of a market is 1, it is not true that no stock's beta is <1. [/ QUOTE ] In the way that you used it, Beta represents correlation to the market. Thus, while it can be used to measure the level of market risk; it can not be used to measure individual stock risk. I suggest you spend some time on riskgrades [/ QUOTE ] I know beta is not a measure of an individual stock's risk. I didn't mean to imply that. It was a seperate but somewhat related statement, just in case people reading this thread weren't aware that betas can be <1. |
|
|