
What Beta Means for Investors
Jul 11, 2024 · 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 500 which has a...
What Beta Means When Considering a Stock's Risk - Investopedia
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...
What is Beta? Definition, Importance, Example | The Motley Fool
Beta is a measure of the systematic risk involved with a stock or other investment. It can tell investors how much a stock tends to move with overall market forces, and can be a...
Beta | Definition, Formula, Calculation, Interpretation, Pros, Cons
Jun 8, 2023 · What Is Beta? Beta (β) measures a stock's volatility or the degree to which its price fluctuates relative to the market as a whole. A benchmark index is chosen to represent the market in the beta calculation.
What is beta? | Investing Definitions - Morningstar
Aug 24, 2023 · Beta is a measure of a stock’s volatility relative to the market as represented by a benchmark (usually the S&P 500). The beta of the benchmark is 1.00, so a stock with a beta of...
Understanding Beta: Definition, Calculation, Uses - Investing.com
Feb 11, 2025 · Beta is a term used in finance to measure the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole. It’s a key component of the Capital Asset...
Beta - What is Beta (β) in Finance? Guide and Examples
What is Beta in Finance? 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.
What Is a Stock’s Beta? What to Know About Stock Volatility and …
Feb 10, 2025 · Beta measures how differently an individual investment will react to systematic risk compared to the broad market. It gives investors insight into how volatile—and therefore how risky—a particular investment might be. The term “beta” comes from the second letter of the Greek alphabet.
Beta Definition & Example - InvestingAnswers
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.
Beta Definition | Investing Dictionary - U.S. News
Dec 8, 2023 · Beta is a measurement of an asset’s risk compared to a benchmark, like the stock market. Beta calculates how an asset, such as a stock, moves in comparison to a broader market. As such, it offers...