In this video, we break down beta-related finance questions often seen in corporate finance and introductory finance courses. Using the Capital Asset Pricing Model (CAPM), we explore key concepts like the relationship between beta and the expected return, the role of the market portfolio, and how beta impacts stock risk. We explain the significance of a beta of 1 and 0, the idea of diversifiable vs. non-diversifiable risk, and how portfolios' betas are calculated as a weighted average of individual stock betas. This video will help you grasp the essential principles behind beta and prepare for theory-based exam questions on the topic.