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Topic: Business
Number of pages / Number of words: 4 / 885
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All investors have homogeneous expectations from the market. Finally, all investors have homogeneous perceptions of every readily available security or fund available for purchase.

Beta measurement requires the acknowledgement of two points for which are specifically defined. First point is defined as a rate of return for risk-free investments...


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First point is defined as a rate of return for risk-free investments. This rate of risk is given a Beta value of 0. Government Treasury Bills (particularly US Government ones) are often cited as risk-free investments with a Beta value of 0. The second point is defined as a rate of return for investments carrying the market rate of risk (i...


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