A story in beta,,Suppose, you have a company that was one of the strongest companies in the country and during the economic crises that company was able to lose and gain very little. They were consistent in revenues and income; met their targets, and did an excellent job at managing the business.,,The rest of the country took the normal nose dive. The stock prices slide 60% and returned almost 50%. If you compared their stock price changes to other companies, this company did as well as most and looked just like the masses of companies in the market. When you look at the beta of these companies they all stayed together in the pack and the betas showed this.,,However, our initial company’s beta is now 2.23. Why? Is this bad or is this good? How can we tell?,
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