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Write a 3 pages paper on estimating beta () under capm model. (Levy, 13)Shares or securities can be broadly classified as aggressive, average or defensive according to their betas. Shares with a beta

Write a 3 pages paper on estimating beta () under capm model. (Levy, 13)

Shares or securities can be broadly classified as aggressive, average or defensive according to their betas. Shares with a beta &gt. 1.0 are described as aggressive. they are more risky than the market average, although they will tend to perform well in a rising or bull market. Consequently investors would require a rate of return from the share that is greater than the market average. Shares with a beta=1.0 are described as average or neutral as their rate of return moves in exact harmony with movements in the stock market average return. they are of average risk and yield average returns.

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