What does beta measure and how does the capm model use this, Financial Management

What does beta measure and how does the capm model use this

What does beta measure, and how does the CAPM model use this information to help us value securities? A biotech company is an extremely risky investment, since the results of a single clinical trial can sometimes cause the company to be very valuable or essentially worthless. Given this information, under CAPM would you expect a biotech company to have a low beta or a high beta? Explain.

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Financial Management: What does beta measure and how does the capm model use this

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