What is 'levered beta' and why do you need it when starting a startup?

The article "Levered Beta is All You Need" introduces readers to the concept of levered beta, which is crucial for investors and financial analysts. Beta measures the sensitivity of an asset's return in relation to the market returns. In the context of leverage, beta changes, which can greatly inform us about the risk associated with investments in companies that have varying levels of debt. The author provides specific examples illustrating how levered beta impacts investment decisions for businesses. The article also emphasizes the importance of using this measure in portfolio construction and financial risk analysis. Understanding the concept of levered beta will undoubtedly help minimize risk and maximize returns.