Part One: Beta is a measure of volatility. Discuss how beta is utilized by the individual investor for decision making regarding one particular stock. Also, discuss how to utilize beta when examining one particular stock to fit within a portfolio of stocks. Apply your discussion to a company of your choosing.
Part Two: Regarding the company you researched for the Beta discussion, what is the stock’s standard deviation and expected value? Explain what they are and how they apply to risk management and investment decision making.