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May 31, 2024 · What Is Beta? Beta (β) is the second letter of the Greek alphabet used in finance to denote the volatility or systematic risk of a security or portfolio compared to the market, usually the S&P...
- Will Kenton
- 4 min
The beta (β) of an investment security (i.e., a stock) is a measurement of its volatility of returns relative to the entire market. It is used as a measure of risk and is an integral part of the Capital Asset Pricing Model ( CAPM ). A company with a higher beta has greater risk and also greater expected returns.
Finance. Beta is used in finance as a measure of (historical; pseudo-implied) financial asset sensitivity to the relevant benchmark index. Conditional on the benchmark index, the resulting beta value can vary considerably (S&P500 vs NASDAQ vs ETF of a specific industry).
2 days ago · What is Beta? The degree to which different portfolios are affected by these systematic risks as compared to the effect on the market as a whole, is different and is measured by Beta. To put it differently, the systematic risks of various securities differ due to their relationships with the market.
May 16, 2024 · Beta is a statistical measure that compares the volatility of a particular stock’s price movements to the overall market. In simple terms, it indicates how much the price of a specific security...
Jun 6, 2024 · Beta is a concept that measures the expected move in a stock relative to movements in the overall market. A beta greater than 1.0 suggests that the stock is more volatile than the broader...
Nov 22, 2020 · Beta is a measure of a stock 's volatility relative to the overall market. It is most often calculated using a stock's movements relative to the S&P 500 Index over the trailing 12-month period. How Does Beta Work? A stock 's beta is determined by analyzing how much its return fluctuates in relation to the overall market return.
