Beta is a measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole. It is used in the capital asset pricing model.
Medical Definition of beta (Entry 2 of 2) 1 : of or relating to one of two or more closely related chemical substances the beta chain of hemoglobin β-yohimbine — used somewhat arbitrarily to specify ordinal relationship or a particular physical form and especially one that is allotropic, isomeric, stereoisomeric, or sometimes polymeric (as in β-D-glucose)
Key Takeaways 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 market, and a beta less than 1.0... Beta is a component of the Capital Asset Pricing Model, which ...
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Beta. The measure of an asset's risk in relation to the market (for example, the S&P500) or to an alternative benchmark or factors. Roughly speaking, a security with a beta of 1.5, will have move, on average, 1.5 times the market return.
The beta coefficient can be interpreted as follows: β =1 exactly as volatile as the market β >1 more volatile than the market β <1>0 less volatile than the market β =0 uncorrelated to the market β <0 negatively correlated to the market
Beta is climbing jargon that designates information about a climb. In rock climbing this may include information about a climb's difficulty, crux, style, length, quality of rock, ease to protect, required equipment, and specific information about hand or foot holds. For alpine climbs, beta may include information about the length and difficulty of the approach, availability of water on the climb and the approach, ease of exiting the route before completing it, descent information, perhaps ...
The beta is the number that tells an investor how risky a stock is compared to most other stocks. Here's a guide to beta and what it means.
In finance, the beta (β or market beta or beta coefficient) is a measure of how an individual asset moves (on average) when the overall stock market increases or decreases. Thus, beta is a useful measure of the contribution of an individual asset to the risk of the market portfolio when it is added in small quantity. Thus, beta is referred to as an asset's non-diversifiable risk, its systematic risk, market risk, or hedge ratio. Beta is not a measure of idiosyncratic risk.