1. In order to minimize this risk, what steps can an investor take? More specifically, what would we call this action or activity?
2. The interpretation of beta. What does it mean if a beta is less than 1? What about greater than 1? How would be interpret these results?
3. In order to measure the magnitude of the potential loss of an investment, placing yourselves in the shoes of a financial manager or investor, what one of these tools would you and others find to be most beneficial to evaluate this risk?