Read the Wall Street Journal’s article “For Some Stocks, Bad News Is Now Good News”, available in the files. The article provides an opportunity to discuss and extend the concept of beta, as well as the Capital Asset Pricing Model. Your discussion of the article should tackle on, but is not limited to, the following:
What is “beta”?
According to the article, what is the relationship between the price of Zoom shares and the performance of the broader market, and why?
What are the “seeming contradiction” referenced in the article?
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