Inference

We analyze the relationship between companies' Beta (overall, up, and down markets) and their 5-year returns using the full sample, as well as breaking it down into low and high Beta groups. Key findings include: Overall: A correlation exists between Beta and 5-year returns, with higher Beta firms showing higher returns in up markets but larger losses in down markets. Low vs. High Beta: Low Beta firms have more stable returns, while high Beta firms show greater volatility but higher return potential.