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You are a staff accountant at manufacturing firm. IT is installing an new accounting system and would like to run the legacy system in parallel with the new system for a few weeks. Your boss, wanting to keep costs down, wants to stop using the legacy system as soon as the new system is installed. Prepare an email stating why the legacy system should run in parallel with the new system.
Portfolio Beta
A measure of the sensitivity of a portfolio's returns to market returns, representing its relative market risk.
Asset Beta
A measure of the risk of a firm's assets without the impact of debt, used to estimate the cost of equity in the capital asset pricing model (CAPM).
Standard Deviation
A measure of the amount of variation or dispersion of a set of values.
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