2024 Beta finance definition - Stock beta is a measurement of the volatility of a stock as compared to the volatility of the market. It can be used to compare the market risk of a particular stock to other stocks in …

 
Apr 18, 2021 · Smart Beta ETF: Definition, Types, Example A smart Beta ETF is an exchange-traded fund that uses a rules-based system for selecting investments to be included in the fund. more . Beta finance definition

May 23, 2022 · Beta is the return generated from a portfolio that can be attributed to overall market returns. Exposure to beta is equivalent to exposure to systematic risk. Alpha is the portion of a portfolio's ... The Beta coefficient represents the slope of the line of best fit for each Re – Rf (y) and Rm – Rf (x) excess return pair. In the graph above, we plotted excess stock returns over excess market returns to find the line of best fit. However, we observe that this stock has a positive intercept value after accounting for the risk-free rate. Buying a car isn’t an easy thing to do. There are so many choices even if you don’t have much money to spend. Do you go for a new car or a higher spec used model? Even if you know the car and the age and mileage you want, you might find the...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 …An aggressive financing strategy is a financing strategy under which a company funds its seasonal requirements with short-term debts and its permanent requirement with long-term debt.In finance, an investment with high alpha is one that has exceeded its benchmark in terms of returns. Alpha is a risk ratio that measures how well a security, such as a mutual fund or even a stock ...BETA. This is a BETA experience. ... they will by definition complete a better tax return), or for getting around the work of good financial recordkeeping. Rather, we find this framework helps our ...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 1.10 has been ...Jun 14, 2023 · BETA. This is a BETA experience. ... they will by definition complete a better tax return), or for getting around the work of good financial recordkeeping. Rather, we find this framework helps our ... BETA. This is a BETA experience. ... they will by definition complete a better tax return), or for getting around the work of good financial recordkeeping. Rather, we find this framework helps our ...Rebalancing is the process of realigning the weightings of a portfolio of assets. Rebalancing involves periodically buying or selling assets in a portfolio to maintain an original desired level of ...Equity: Generally speaking, equity is the value of an asset less the amount of all liabilities on that asset. It can be represented with the accounting equation : Assets -Liabilities = Equity.Barra Risk Factor Analysis: The Barra Risk Factor Analysis is a multi-factor model created by Barra Inc., which is used to measure the overall risk associated with a security relative to the ...Financial Terms By: b. 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 ... 24 Mar 2023 ... In finance, alpha, beta, and gamma are terms used to describe different types of risk and return in the stock market. · 1) Alpha: Alpha ...In today’s fast-paced world, staying connected to your finances is more important than ever. With the rise of online banking, managing your money has become easier and more convenient.FINANCE definition: 1. (the management of) a supply of money: 2. the money that a person or company has: 3. to…. Learn more.24 Mar 2023 ... 6- Which financial ratios would you be most likely to consult if you were the following ? Why ? -A banker considering the financing of season ...Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, which is the study of production, distribution, and consumption of goods and services; the discipline of financial economics bridges the two. Financial activities take place in financial systems at various scopes; thus, the field can …Cost Of Equity: The cost of equity is the return a company requires to decide if an investment meets capital return requirements; it is often used as a capital budgeting threshold for required ...Stock beta is a measurement of the volatility of a stock as compared to the volatility of the market. It can be used to compare the market risk of a particular stock to other stocks in the same industry. Stock beta is measured by analyzing a stock’s performance in the past in order to evaluate how its price might move in relation to the ...Barra Risk Factor Analysis: The Barra Risk Factor Analysis is a multi-factor model created by Barra Inc., which is used to measure the overall risk associated with a security relative to the ...Required Rate Of Return - RRR: The required rate of return (RRR) is the minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular ...Sep 30, 2022 · Beta in finance is a measure of a security 's volatility. It's a measure of how volatile a security is in comparison to the market as a whole, and investors can use it to inform investment decisions. Beta measures are a common way to measure volatility, though many other methods for measuring volatility exist. The beta of the stock is pretty easy to calculate. I’ve explained it in this chapter here. Refer to section 11.5. I’ll assume the beta of the company we are modeling as 1.2. As you may know, a beta of 1.2 is high beta. But don’t worry; you can change these numbers anytime since this is an integrated financial model.Zero-Beta Portfolio: A zero-beta portfolio is a portfolio constructed to have zero systematic risk or, in other words, a beta of zero. A zero-beta portfolio would have the same expected return as ...To calculate a beta portfolio, obtain the beta values for all stocks in the portfolio. Find the percentages that each stock represents of the whole portfolio. Multiply the percentage portfolio of each stock by its beta value.Managing your finances can be a daunting task. With the right tools, however, it doesn’t have to be. Free checkbook register software can help you keep track of your spending and make sure your finances are in order. Here’s how you can get ...Beta is a statistic that measures the expected increase or decrease of an individual stock price in proportion to movements of the stock market as a whole. It can be used to indicate the contribution of an asset to the market risk of a portfolio when it is added in small quantity. Learn how to calculate, interpret and estimate beta values, and the relationship between beta and other risk measures.Alpha is a measure of the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by beta. For example, if a mutual fund returned 10% in a year in which the S&P 500 rose only 5%, that fund would have a higher alpha. Conversely, if the fund gained 10% in a year when the S&P 500 rose 15% ...24 Mar 2023 ... 6- Which financial ratios would you be most likely to consult if you were the following ? Why ? -A banker considering the financing of season ...Alpha is a measure of the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by beta. For example, if a mutual fund returned 10% in a year in which the S&P 500 rose only 5%, that fund would have a higher alpha. Conversely, if the fund gained 10% in a year when the S&P 500 rose 15% ...View What is Beta in Finance_ - Definition & Formula _ Study.com.pdf from FINANCE 307 at Royal Melbourne Institute of Technology. 9/24/23, 8:40 PM What is Beta in Finance?FINANCE definition: 1. (the management of) a supply of money: 2. the money that a person or company has: 3. to…. Learn more.Beta (finance) synonyms, Beta (finance) pronunciation, Beta (finance) translation, English dictionary definition of Beta (finance). n stock exchange a measure of the extent to which a particular security rises or falls in value in response …To calculate unlevered beta, the formula divides the levered beta by [1 plus the product of (1 minus the tax rate) and the company’s debt/equity ratio]. Typically, a company’s unlevered beta can be calculated by taking the company’s reported levered beta from a financial database such as Bloomberg and Yahoo Finance and then applying the ... To calculate unlevered beta, the formula divides the levered beta by [1 plus the product of (1 minus the tax rate) and the company’s debt/equity ratio]. Typically, a company’s unlevered beta can be calculated by taking the company’s reported levered beta from a financial database such as Bloomberg and Yahoo Finance and then applying the ...Beta, often represented by the Greek letter β, is a way of measuring the of the returns you get from an investment. Volatility is a measure of how much and how quickly the value of an asset rises ...Multiple Linear Regression - MLR: Multiple linear regression (MLR) is a statistical technique that uses several explanatory variables to predict the outcome of a response variable. The goal of ...In today’s fast-paced world, staying connected to your finances is more important than ever. With the rise of online banking, managing your money has become easier and more convenient.Key Takeaways. A stock's beta indicates how closely its price follows the same pattern as a relevant index over time. R-squared indicates how closely alpha and beta reflect a stock's return as ...Covariance is a measure of the degree to which returns on two risky assets move in tandem. A positive covariance means that asset returns move together, while a negative covariance means returns ...Jun 8, 2023 · Beta can guide investors in diversifying their portfolios. Disadvantages of Beta. Using beta also has some cons, including: Beta is only one measure of risk and should not be used in isolation. Beta values can change over time, so it is essential to monitor them regularly. Beta can be affected by market conditions, so it may not be accurate in ... BETA definition: 1. the second letter of the Greek alphabet 2. Beta software is at the second stage of development…. Learn more.Definition: Beta, in finance, is measurement of the volatility of an investment in the market relative to other investments. What Does Beta in Finance Mean? What is the definition of beta finance? Volatility or risk is determined by how much an investment deviates from the standard either up or down, this is known as standard deviation.The larger an investment …R-squared is one of the most basic measuring tools for mutual fund analysis. It is a metric you can use to assess the degree to which a given fund matches its benchmark. Alternate name: Coefficient of determination. Acronym: R2. R-squared does not measure how well a mutual fund or your portfolio performs.ETF meaning: what is an ETF? Advantages of ETFs; What can you invest in through ETFs? ETF investment strategies: how do investors use ETFs? ETFs vs index funds ...Beta is a measurement of the volatility of returns of an investment security relative to the market. It is used as a measure of risk and an integral part of the Capital Asset Pricing Model (CAPM). Learn how to calculate beta, interpret it, and compare it with levered and unlevered beta, equity and asset beta. In today’s fast-paced digital world, staying connected has become more important than ever. Communication apps play a crucial role in keeping us connected with our loved ones, friends, and colleagues.Delta: The delta is a ratio comparing the change in the price of an asset, usually a marketable security , to the corresponding change in the price of its derivative . For example, if a stock ...Financial Terms By: b. 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 ...Nov 21, 2023 · Beta is a measure used to determine the fund's expected returns. Alpha is commonly considered the active return on an investment, working as a gauge to determine how a fund is performing against ... Managing your finances can be a hassle, but with Chime’s mobile app and online account, it’s never been easier. In this article, we’ll explore the benefits of using Chime’s platform to manage your money on the go.Volatility is determined either by using the standard deviation or beta. Standard deviation measures the amount of dispersion in a security’s prices. Beta determines a security’s volatility relative to that of the overall market. Beta can be calculated using regression analysis. Types of Volatility 1. Historical VolatilityIn today’s fast-paced world, managing your finances can sometimes feel like an overwhelming task. Keeping track of expenses, budgeting effectively, and staying on top of your financial goals can be challenging without the right tools.Beta is a numeric value that measures the fluctuations of a stock to changes in the overall stock market. Description: Beta measures the responsiveness of a stock's price to changes in the overall stock market. On comparison of the benchmark index for e.g. NSE Nifty to a particular stock returns, a pattern develops that shows the stock's ...β is the Beta Beta Beta is a financial metric that determines how sensitive a stock's price is to changes in the market price (index). It's used to analyze the systematic risks associated with a specific investment. In statistics, beta is the slope of a line that can be calculated by regressing stock returns against market returns. read more of the Investment that …Beta = Covariance / Variance In this case, covariance refers to the direction of the relationship between the asset and market return. If both are moving in the same direction, the covariance is ...Jul 23, 2013 · The finance beta definition, or beta coefficient, measures an asset’s sensitivity to movements in the overall stock market. It is a measure of the asset’s volatility in relation to the stock market. To calculate the beta of an asset, use regression analysis to compare the historic returns of the asset with the historic returns of the stock ... Differences between alpha and beta. Though both greek letters, alpha and beta are quite different from each other. Alpha is a way to measure excess return, while beta is used to measure the ...Debt beta is used in case of calculating beta of the firm. It is used in the following formula: Asset Beta = Equity Beta / (1 + [ (1 – Tax Rate) (debt/equity)] Subsequently, levered or unlevered beta is calculated using the asset beta, and if the company wants to include debt in the calculation or not. In the case of calculating levered beta:Are you considering purchasing a used RV in Jacksonville, FL? If so, you may be wondering how to finance your purchase. Financing an RV can seem like a daunting task, but with the right information and preparation, it can be a smooth and st...Zero-Beta Portfolio: A zero-beta portfolio is a portfolio constructed to have zero systematic risk or, in other words, a beta of zero. A zero-beta portfolio would have the same expected return as ...Understanding the Beta Definition. The term beta in finance, sometimes written using the Greek letter beta (β), is a measure of volatility in a particular stock or other investment opportunity ...BETA meaning: 1. the second letter of the Greek alphabet 2. Beta software is at the second stage of development…. Learn more.By the definition of standard deviation, it is a measure of volatility, Sharpe Ratio measures risk-adjusted performance or how well a fund performs compared to its volatility. Alpha indicates how much value has been either added or subtracted by the fund manager’s investment call and Beta, on the other hand, marks how sensitive a fund can …May 25, 2023 · Alpha is used in finance as a measure of performance . Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark which ... The beta of an asset or a portfolio of assets measures its volatility in comparison to that of the market - or a representative market indicator - as a whole. Beta also is the measure of an asset's return compared to that of the market as a whole, as the volatility of an asset represents variations of its price, which in turn are a key element ...Factors are not new — they have been present in portfolios for decades. But exchange traded funds (ETFs) helped to revolutionize how investors access these historically rewarded strategies by capturing the power of factors (sometimes called “ smart beta ”) in a transparent and cost-effective way. Video 02:51.Beta. A measure of a security's or portfolio's volatility. A beta of 1 means that the security or portfolio is neither more nor less volatile or risky than the wider market. A beta of more than 1 indicates greater volatility and a beta of less than 1 indicates less. Beta is an important component of the Capital Asset Pricing Model, which ... 26 Okt 2022 ... Beta (β) is one of the risk measurements for a stock or portfolio by measuring the volatility of the asset or portfolio compared to the ...Beta, often represented by the Greek letter β, is a way of measuring the of the returns you get from an investment. Volatility is a measure of how much and how quickly the value of an asset rises ...1. Beta and CAPM. In finance, regression analysis is used to calculate the Beta (volatility of returns relative to the overall market) for a stock. It can be done in Excel using the Slope function. Download CFI’s free beta calculator! 2. Forecasting Revenues and ExpensesGamma is the rate of change in an option's delta per 1-point move in the underlying asset's price. Gamma is an important measure of the convexity of a derivative's value, in relation to the ...the market. The beta coefficient of an asset is used in the capital asset pricing model, along with the risk-free. rate and expected return rate of the market, to estimate the return on the asset. This can be used. to infer whether or not the asset is currently over- or under-valued by the market. A portfolio beta.Beta Definition. Beta is a measure of a stock’s risk in relation to the market or a benchmark index. It indicates the degree to which the stock’s price is expected to move for every 1% movement in the market. Understanding Beta Coefficient. In the realm of finance, the beta coefficient is a key element of the overall beta concept.In today’s fast-paced business world, managing finances efficiently is crucial for any organization’s success. With the advancement of technology, there are numerous software solutions available to streamline financial operations, one of wh...Beta = Covariance / Variance In this case, covariance refers to the direction of the relationship between the asset and market return. If both are moving in the same direction, the covariance is ...Beta: Definition, Calculation, and Explanation for Investors 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 ...Beta is a statistic that measures the expected increase or decrease of an individual stock price in proportion to movements of the stock market as a whole. It can be used to indicate the contribution of an asset to the market risk of a portfolio when it is added in small quantity. Learn how to calculate, interpret and estimate beta values, and the relationship between beta and other risk measures. Cost of Equity Example in Excel (CAPM Approach) Step 1: Find the RFR (risk-free rate) of the market. Step 2: Compute or locate the beta of each company. Step 3: Calculate the ERP (Equity Risk Premium) ERP = E (Rm) – Rf. Where: E (R m) = Expected market return. R f = Risk-free rate of return.Beta finance definition

CAPM Beta Formula. If you have a slightest of the hint regarding DCF, then you would have heard about the Capital Asset Pricing Model (CAPM CAPM The Capital Asset Pricing Model (CAPM) defines the expected return from a portfolio of various securities with varying degrees of risk.It also considers the volatility of a particular security in relation to the …. Beta finance definition

beta finance definition

Alpha refers to the incremental return achieved by fund managers in excess of benchmark returns. If an investment strategy has generated alpha, the investor has “beat the market” with abnormal returns above that of the broader market. Most often, the benchmark used to compare returns against is the S&P 500 market index.Multiple Linear Regression - MLR: Multiple linear regression (MLR) is a statistical technique that uses several explanatory variables to predict the outcome of a response variable. The goal of ...Debt beta is used in case of calculating beta of the firm. It is used in the following formula: Asset Beta = Equity Beta / (1 + [ (1 – Tax Rate) (debt/equity)] Subsequently, levered or unlevered beta is calculated using the asset beta, and if the company wants to include debt in the calculation or not. In the case of calculating levered beta:Cost Of Equity: The cost of equity is the return a company requires to decide if an investment meets capital return requirements; it is often used as a capital budgeting threshold for required ...24 Jan 2023 ... What Does Beta In Finance Mean? Beta (β), which is mostly employed in the capital asset pricing model (CAPM), is a measurement of a security ...Beta is a measure of a stock's volatility in relation to the overall market. By definition, the market, such as the S&P 500 Index, has a beta of 1.0, and individual stocks are ranked...Beta, D/E Ratio, Effective Tax rate, Unlevered beta, Cash/Firm value, Unlevered beta ... Financial Svcs. (Non-bank & Insurance), 223, 0.89, 1004.40%, 14.61%, 0.10 ...Financial Terms FRM. What is Beta? Unraveling the Mysteries of Financial Volatility. Beta is a measure of volatility compared to a benchmark index like the S& P 500. It is also primarily used in the capital asset pricing model (CAPM).In finance, an investment with high alpha is one that has exceeded its benchmark in terms of returns. Alpha is a risk ratio that measures how well a security, such as a mutual fund or even a stock ...Adjusted unlevered beta 0.717x c Derived from peer group median value (Capital IQ). Adjustment according to Blume Adjusted relevered beta 1.420x d According to Practitioners' Method: Beta (relevered) = beta (unlevered) * (1 + D/E) Size premium 3.50% e Size premium (illustrative) Cost of equity 12.73% 13.05% Ce = a + b x d + eWhat is the definition of beta finance? Volatility or risk is determined by how much an investment deviates from the standard either up or down, this is known as standard deviation . The larger an investment deviates from its average price, the more risk it is considered to have; therefore, the higher the beta.Abnormal Return: An abnormal return is a term used to describe the returns generated by a given security or portfolio over a period of time that is different from the expected rate of return. The ...May 24, 2023 · Capital Asset Pricing Model - CAPM: The capital asset pricing model (CAPM) is a model that describes the relationship between systematic risk and expected return for assets, particularly stocks ... A benchmark is a standard or measure that can be used to analyze the allocation, risk, and return of a given portfolio. A variety of benchmarks can also be used to understand how a portfolio is ...Beta is a measurement of the volatility of returns of an investment security relative to the market. It is used as a measure of risk and an integral part of the Capital Asset …The Treynor Ratio is a portfolio performance measure that adjusts for systematic risk. In contrast to the Sharpe Ratio, which adjusts return with the standard deviation of the portfolio, the Treynor Ratio uses the Portfolio Beta, which is a measure of systematic risk. These ratios are concerned with the risk and return performance of a ...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 1.10 has been ...Beta Definition. Beta is a measure of volatility or risk of a stock in relation to market risk. Also known as the beta coefficient (β), the capital asset pricing model (CAPM) uses beta to calculate the expected return of the stock. Formula of Beta. Beta (β) = Covariance (r i,r m)/Variance (r m)The beta of an asset or a portfolio of assets measures its volatility in comparison to that of the market - or a representative market indicator - as a whole. Beta also is the measure of an asset's return compared to that of the market as a whole, as the volatility of an asset represents variations of its price, which in turn are a key element ...To calculate a beta portfolio, obtain the beta values for all stocks in the portfolio. Find the percentages that each stock represents of the whole portfolio. Multiply the percentage portfolio of each stock by its beta value.Aug 4, 2021 · The basic model is given by: y = a + bx + u. Where: y is the performance of the stock or fund. a is alpha, which is the excess return of the stock or fund. b is beta, which is volatility relative ... Beta risk is the probability that a false null hypothesis will be accepted by a statistical test. This is also known as a Type II error . The primary determinant of ...Numerous studies have been conducted on beta parameters, especially on the stability of beta features in relation to the phases of the stock market cycle, the frequency of rate of return ...Finance describes the management, creation and study of money, banking, credit, investments, assets and liabilities that make up financial systems, as well as the study of those financial ...Whether you’ve long invested in cryptocurrency or have recently opened your first crypto wallet, you’ve likely stumbled across the term “decentralized finance” while researching the blockchain or emerging coins.Dec 17, 2020 · Beta is a measure of the relationship between the rate of return of a company’s stock and the overall market return. It compares the volatility of a stock relative to that of the market. Beta indicates how an asset’s value has reacted to either a movement up or a movement down in the market. The beta of the market must be 1 since this is ... Beta (finance) synonyms, Beta (finance) pronunciation, Beta (finance) translation, English dictionary definition of Beta (finance). n stock exchange a measure of the extent to which a particular security rises or falls in value in response to market movements Collins English Dictionary –... Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio ...Financial Terms By: b. 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 ... Portable Alpha: A strategy in which portfolio managers separate alpha from beta by investing in securities that differ from the market index from which their beta is derived. Alpha is the return ...Sharpe ratio. In finance, the Sharpe ratio (also known as the Sharpe index, the Sharpe measure, and the reward-to-variability ratio) measures the performance of an investment such as a security or portfolio compared to a risk-free asset, after adjusting for its risk. It is defined as the difference between the returns of the investment and the ...Slippage refers to the difference between the expected price of a trade and the price at which the trade is actually executed. Slippage often occurs during periods of higher volatility when market ...R-squared is a statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index. For example, an R-squared for a fixed ...The beta formula is as follows –. Beta (β) = Covariance (Ri, Rm) /Variance (Rm) Here, Ri is the return from the stock. Rm is the return from the benchmark index/markets. Covariance of the stock and the markets. Variance of the market. The beta value of a stock can be greater, lesser, or equal to 1. Here’s how to read these values –.β is the Beta Beta Beta is a financial metric that determines how sensitive a stock's price is to changes in the market price (index). It's used to analyze the systematic risks associated with a specific investment. In statistics, beta is the slope of a line that can be calculated by regressing stock returns against market returns. read more of the Investment that …April 21, 2022. Beta is a term used in trading to indicate volatility or systematic risk of an asset compared to that of the overall market. Beta is one of the 5 technical risk ratios, is …Alpha (finance) Alpha is a measure of the active return on an investment, the performance of that investment compared with a suitable market index. An alpha of 1% means the investment's return on investment over a selected period of time was 1% better than the market during that same period; a negative alpha means the investment underperformed ...Capital Asset Pricing Model - CAPM: The capital asset pricing model (CAPM) is a model that describes the relationship between systematic risk and expected return for assets, particularly stocks ...Beta might offer useful data for evaluating stocks, but it does have limitations. Beta is made use of in obtaining short-term risk of a security. It is also used to analyse volatility trends to determine the cost of equity through CAPM. Nevertheless, as beta is obtained through historical data points, it would not be of use for investors ...To calculate unlevered beta, the formula divides the levered beta by [1 plus the product of (1 minus the tax rate) and the company’s debt/equity ratio]. Typically, a company’s unlevered beta can be calculated by taking the company’s reported levered beta from a financial database such as Bloomberg and Yahoo Finance and then applying the ... To calculate unlevered beta, the formula divides the levered beta by [1 plus the product of (1 minus the tax rate) and the company’s debt/equity ratio]. Typically, a company’s unlevered beta can be calculated by taking the company’s reported levered beta from a financial database such as Bloomberg and Yahoo Finance and then applying the ...Beta in finance is a measure of a security 's volatility. It's a measure of how volatile a security is in comparison to the market as a whole, and investors can use it to inform investment decisions. Beta measures are a common way to measure volatility, though many other methods for measuring volatility exist.Portable Alpha: A strategy in which portfolio managers separate alpha from beta by investing in securities that differ from the market index from which their beta is derived. Alpha is the return ...What Is Equity Beta? Equity Beta measures the volatility of the stock to the market, i.e., how sensitive is the stock price to a change in the overall market.It compares the volatility associated with the change in prices of a security. Equity Beta is commonly referred to as levered beta, i.e., a beta Beta Beta is a financial metric that determines how sensitive a …Market Portfolio: A market portfolio is a theoretical bundle of investments that includes every type of asset available in the world financial market, with each asset weighted in proportion to its ...beta: [noun] the 2nd letter of the Greek alphabet — see Alphabet Table.Beta is a measure of the relationship between the rate of return of a company’s stock and the overall market return. It compares the volatility of a stock relative to that of the market. Beta indicates how an asset’s value has reacted to either a movement up or a movement down in the market. The beta of the market must be 1 since this is ...Beta is widely used by investors and analysts to understand how much risk a stock carries. Beta can be used with other measures, such as alpha, to make investment …Mutual Fund: A mutual fund is a professionally-managed investment scheme, usually run by an asset management company that brings together a group of people and invests their money in stocks, bonds and other securities. Description: As an investor, you can buy mutual fund 'units', which basically represent your share of holdings in a particular .... Nasdaq rxrx