Beta Management Co. Harvard Case Solution & Analysis

Manager of a small investment company successfully using index funds for the limited time the market. The growth has allowed it to move into stock picking. It considers two small and highly variable listed shares, but concerned about the risk that these investments could add to its "portfolio." Provides input to the CAPM. Students learn about the overall risk, non-diversifiable or portfolio risk, and (CAPM) beta, and calculate the volatility stocks separately, and the portfolio variance with and without reserves, to see how extremely risky (but low-beta) is actually stock reduces the risk.;, and calculate the stock beta "Hide
by Michael E. Edleson Source: HBS Premier Case Collection 5 pages. Publication Date: March 23, 1992. Prod. # 292 122-PDF-ENG

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