Beta is a measurement of an asset’s risk compared to a benchmark, like the stock market. The market or benchmark used to calculate an asset’s beta always has a beta of 1. Stocks that have a return ...

A high beta index is a basket of stocks that exhibit greater volatility than a broader market index like the S&P 500. The S&P 500 High Beta Index is the most well-known of these indexes.

Every investor strives to balance two conflicting goals: Maximizing their investment returns and minimizing their risk. Beta offers a way to measure the amount of risk you’re taking on for a given ...

A stock’s beta is a measure of how volatile that stock is compared with the market. Here’s how to calculate it, how to use it and what it’s good for. Many, or all, of the products featured on this ...

Investors understand intuitively that some stocks are riskier than others. The capital asset pricing model attempts to quantify the common perception of risk using a term called beta. By understanding ...

Discover why unlevering beta is essential in WACC calculations for comparing debt and equity financing costs effectively.

Alpha and beta are two terms that get thrown around a lot in investing. They sound complicated, but they’re actually much simpler than they seem. Here’s what you need to know about alpha and beta in ...

We often hear the word beta in the context of “beta test”. It’s a way of testing something (e.g. a software program) in a real-world situation to iron out any glitches before rolling it out to the ...