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What are the factors that may cause a company's beta to differ from its industry's beta?...

What are the factors that may cause a company's beta to differ from its industry's beta? Please, include an example.

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Answer #1

Company related factors that may cause a company;s beta to differ
1. Profitability for the particular company.
2. The turnover ratios, the financial leverage of the particular company might be different from the industry.
3. The alpha of the company might be different from the industry.

Beta of Vericel Corp is above 4 which way above the beta of medical and healthcare industry.

Please Discuss in case of Doubt

Best of Luck. God Bless
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