do you know why....

if the beta for a stock is greater than 1, his expected return is greater than the expected market return??

have you ever heard of opportunity cost? Well…explain to me the opportunity cost I have in replying to this question. :slight_smile:

haha…later I can answer you another one…that’s your opp cost

and I am not talking about the CAPM formula

There is a nice weather in argentina? I wish I could be there! Usually you have: Beta >1 bullish on the stock Beta <1 bearish… I hope this help :wink:

If volatility of the stock is higher than market volatility, you’d expect its return to be higher as well.

Beta is a measure of systematic risk. Beta=1 is the correlation of the market with itself. Beta>1, according to CAPM, greater systematic risk gets compensated with a greater expected return.

very helpful, thank you!!

great weather!!! very shinny