Market and Firm-Specific Risk
Learn how to interpret alpha and beta in the context of firm-specific and market risk. In this extension of the Beta Visualization teaching tool, you will be guided through the process of locating stocks with high/low alphas, and then interpreting results. You will also learn about R2 and the importance of model fit.
Select the Slide Deck for a guided assignment on this topic. Then use the Link to Platform to try the exercise yourself. Your instructor may have additional guidance regarding the use of this Teaching Tool.