Final answer:
The beta for Ford Motors Corporation is a measure of the stock's volatility relative to the overall market. It is expressed as a number without any units. To determine the riskiness of the stock, we compare its beta to a benchmark such as the market index.
Step-by-step explanation:
The beta for Ford Motors Corporation is 1.54. Beta is a measure of a stock's volatility in relation to the overall market. A beta of 1.54 means that the stock tends to be 54% more volatile than the average stock in the market. Beta has no unit as it is a relative measure. It is not expressed as a percentage or in dollars. For instance, if the beta is 0.8, it is simply 0.8 and not 0.8% or $0.8.
To determine the riskiness of Ford Motors Company's stocks, we compare its beta to a benchmark such as the market index (e.g., S&P 500). If the beta is higher than 1, it indicates that the stock is more volatile than the market. If the beta is lower than 1, it indicates that the stock is less volatile than the market.