Beta Management Company.
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Beta Management Company Introduction Sarah Wolfe of Beta Management Company, a small investment company near Boston, decided to expand her business after acquiring the clientele and assets she needed. In 1990, she had been successful in the management of Beta's funds by focusing on the Vanguard Index 500 Trust, even generating good returns in the worst of times. After doubling the size of Beta, she decided to pick some smaller stocks to go along with the index mutual fund. She also planned to increase the proportion of Beta's assets in equities, sensing that 1991 was going to be a good year. Problem In order to accomplish her goals, she had a choice between two small NYSE-listed companies, i.e. California R.E.I.T. and Brown Group, Inc. She felt both stocks had their ups and downs, but seemed like attractive investments. While always promising her clients to keep their exposure to risk at a...


