What does beta mean in stock price

A stock beta is an assessment of a stock's tendency to undergo price changes, or its volatility, as well as its potential returns compared to the market in general. It is expressed as a ratio, where a score of one represents performance comparable to a generic market, and returns above or below the market may receive scores Definition: Stock beta, represented by the beta coefficient, is an investment metric that assesses the risk and associated volatility of a certain investment in relation to the market. In laymen’s terms, it’s an estimate of the stock’s risk or volatility in comparison to what the market reflects as the average risk. In the stock market, the word or Greek letter beta is used as a measurement of the riskiness or volatility of a particular investment relative to the market as a whole. If stock beta is higher, 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.

Betas are mostly used to compare return/risk ratios for stocks and mutual funds, because the stock market, or funds composed of stocks, have a greater diversity

implies that all stocks will move positively with the market and hence the betas of individual stocks are all positive. As it is so, the risk premium or beta premium of  For example, when an investor says 'my portfolio is beating the market,' what do they mean? The market is a benchmark index, primarily represented by the Dow   Stock Beta is one of the statistical tools that quantify the volatility in the prices of a How sensitive or volatile is the stock's price movement with respect to the  Betas are mostly used to compare return/risk ratios for stocks and mutual funds, because the stock market, or funds composed of stocks, have a greater diversity

What does it mean. If the beta value is 1 then it means that the rate of change in stock prices is the same as the overall market. If the beta is greater than 1,

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. Definition: 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. Beta is a measure of a stock’s systematic, or market, risk, and offers investors a good indication of an issue’s volatility relative to the overall stock market. The market beta is set at 1.00, and a stock’s beta is calculated by Value Line , based on past stock-price volatility. In finance, the beta (β or beta coefficient) of an investment is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors. The market portfolio of all investable assets has a beta of exactly 1. A beta below 1 can indicate either an investment with lower volatility than the market, or a volatile investment whose price movements are not highly correlated with the market. An example of the first is a treasury bill: the price does not fluctuate Definition: 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 openness to the market risk. To give an example, a stock with a beta of 1.75 will offer 1.75 times the typical market return. Beta represents systemic risk – risk that can’t be diluted by diversification of your investment portfolios .