Investing in a company with a low unlevered beta may seem less risky as it indicates that the company's returns are less volatile compared to the market. However, potential risks could include lower returns as these companies may not provide high growth rates. Additionally, a low unlevered beta doesn't necessarily mean the company is immune to market or economic downturns. It's also important to consider other factors such as the company's financial health, industry position, and future growth prospects.
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