Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns.
 | | | Beta | | Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which calculates the expected return of an asset based on its beta and expected market returns. Beta is also known as the beta coefficient. | | | Breaking it Down: | | Beta is calculated using regression analysis. Beta represents the tendency of a security's returns to respond to swings in the... Read More | | | | | | | Beta: Know the Risk | | Beta says something about measuring price risk in stocks, but how much does it say about fundamental risk factors too? Read More | | | | | | | | | | | | | Volatility | | In other words, volatility refers to the amount of uncertainty or risk about the size of changes in a security's value. Read More | | | | | Systematic Risk | | Systematic risk, also known as "market risk," is risk inherent to the entire market or market segment. Read More | | | | Security Market Line - SML | | A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky marketable securities. Also refered to as the "characteristic line". Read More | | | | | | | | | | Follow Us: |  |  | | | | | | |
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