This discussion helps you develop the skills to master the following course competencies:
• Apply the theories, models, and practices of finance to the financial management of the firm.
Discuss beta and its importance. What type of investors would invest in a high beta stock and a low beta stock? Also, in your textbook, review the Real World case, focusing on "Beta, Beta, Who's Got the Beta?," on page 343. Despite the discrepancies, is beta a useful tool? Why were the beta estimates discussed in the reading different? Why would you as an investor rely on beta in the first place?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.