Beta measures a stock’s volatility compared to the overall market. A beta above 1 means the stock is more volatile, while a ...

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 ...

Investors, whether beginner or seasoned professionals, all have a threshold for risk. Some prefer to play it safe and favor a low-risk investment plan while others are more advantageous with a “high ...

Investing in stocks involves inherent risk. As a stock owner, you are part owner in the company. As such, you participate in the positive growth of the company as well as the declines the stock ...

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. Thomas J Catalano is a CFP and ...

In a nutshell, beta is a measure of how reactive a stock is to overall market movements – particularly those of the S&P 500 benchmark index. Obviously, stocks move individually, and for a variety of ...

Beta is the 2nd letter in the Greek alphabet, and the financial world uses it to refer to the sensitivity of an asset’s price compared to a specific index or benchmark. Beta is also used as a measure ...