How would you interpret the beta value

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1. The stock of Amrep Corporation has a beta value estimated to be 1.4. How would you interpret this beta value? How would you evaluate the firm's systematic risk? 11. How is a security's beta value computed?

2. Under what circumstances can the beta concept be used to estimate the rate of return required by investors in a stock? What problems are encountered when using the CAPM?

Reference no: EM131338811

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