Explain difference to a local investment club gathering

Reference no: EM1355916

The stock of Lansing Corporation has a beta of 1.2. Lansing earned an annual return of 14 percent during a period when the return on the market portfolio was 12.5 percent. If the risk-free rate was 6 percent, did Lansing outperform the market on a risk-adjusted basis?

There are several publishers who will provide a beta for a company, including Moody's Standard and Poor's, Value Line, and others.

If you saw three different betas for the same company that ranged from 1.0 to 1.7, how would you explain this difference to a local investment club gathering?

Please provide a detailed explanation to the above questions and include any definitions to the finance terms for better clarification.

Reference no: EM1355916

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