Ass indicated in Chapter 4, the risk of investing in a company’s stock may be measured by calculating its beta. A stock with a beta of 1.0 is considered to offer an average amount of risk. During fiscal year 2008, Hershey’s beta was approximately 0.5 and Tootsie Roll’s was 0.9 . During that same year, the industry average beta is 0.5 .Consequently, an investment in the average company in the candy and Other Confectionary Products industry is viewed as less risky than an average investment. Hershey’s beta is the same as the average company in the industry, whereas Tootsie Roll’s beta is somewhat higher than the industry average, indicating it is viewed as a relatively riskier investment. We also know from Chapter 6 that at the end of fiscal year 2008, Hershey’s stock was selling at about 24.64 times earnings while Tootsie Roll’s was selling for 36.59 times earnings