Abstract
Beta is the representation of the systematic risk of the company. This is the risk that bthe company takes even if it spread its share between more than 30 different company. If beta is equal to 1,0, it means that the stock evaluation will follow the tendencies of the market. If Beta is more than 1,0 it is riskier than the average. If Beta is less 1,0, it is less risky than the average.
Stocks with a high Beta are companies' stock that are really aware of what happened in the stock market and influenced by every little changes in the political or economical issues. Stocks with a low Beta are strong companies that can face economical or political changes in the geopolitical environment.
For example : BNP Paripas, LVMH and Vivendi are three company that have a Beta higher than 1,0. On the contrary, Total and Vinci are two companies that have a beta between 0,5 and 0,6.
