Beta is a measure of a company's common stock price volatility relative to the market. It is calculated as the slope of the 60 month regression line of the percentage price change of the stock relative to the percentage price change of the relevant index e. Beta values are not calculated if less than 24 months of pricing is available.

You can read more about our calculation here. According to asset pricing theory, beta represents the type of risk, systematic risk, that cannot be diversified away.

What Does Beta Mean in Finance? - TheStreet Definition

By definition, the market itself has a beta of 1. When using beta, there are a number of issues that you need to be aware of: It is possible for a security to have a zero beta and higher volatility than the market.

Volatility (finance) - Wikipedia

Theoretically, higher-beta stocks tend to be more volatile and therefore riskier, but provide the potential for higher returns. Some have challenged this idea, claiming that the data show little relation between beta and potential reward.

What is the definition of Beta volatile stock market meaning Which Guru Screens is Beta used in? Brilliant - You've created a folio! Now let's add stock primary market secondary market stocks to it.

Volatility Definition - eqogypacuc.web.fc2.com

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