In finance, the beta of an investment indicates whether the investment is more or less volatile .... The equation of the SML, giving the expected value of the return on asset i, is thus: ... In the same way a stock's beta shows its relation to market shifts, it is also an indicator for required returns on investment (ROI). Given a ...
Beta is a measure of the volatility, or systematic risk, of a security or a ... A security's beta should only be used when a security has a high R-squared value in relation ... For example, if a stock's beta is 1.2, it's theoretically 20% more volatile than ...
Jan 3, 2017 ... How should investors assess risk in the stocks they buy or sell? As you can imagine, ... Value investors scorn the idea of beta because it implies that a stock that has fallen sharply in value is more risky than it was before it fell.
Beta is a measurement of a stock's price fluctuations, which is often called volatility, and is used by investors to gauge how quickly a stock's price will rise or fall.
A stock's beta coefficient is a measure of its volatility over time compared to a market benchmark. A beta of 1 means that a stock's volatility matches up exactly ...
In strict percentage terms, a stock with a beta of 0.75 is likely to rise or fall 0.75 per ... Beta values are not calculated if less than 24 months of pricing is available.
Our collection includes a number of articles and books on stock market investment which explain Beta values in greater depth. An introduction to stock exchange ...
Beta - Definition for Beta from Morningstar - A measure of a fund's sensitivity to ... to the price of gold and gold-mining stocks than to the overall stock market.
Provides a definition of beta including its theory, the pros and cons of the metric, explains how to use beta values when analyzing a stock and its calculation.