A beta of 1.1 indicates a stock that is 10 percent more volatile than the market. Beta, Trademark. a brand of tape format for VCR tape, incompatible with other formats. Compare VHS. Chiefly British. a grade showing that a student is in the middle or second of three scholastic sections...
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For example, astockwith a beta of 2.0 is usually twice as volatile as the broader market. If the S&P 500 were to fall by -10% nextyear, then thestockwould be expected to fall about -20% (assuming that thestockbehaves similar to how it has in the past). Thestockwould also be expect...
stock exchange a measure of the extent to which a particular security rises or falls in value in response to market movements 1 / Read More Play Video Replay the list TOP ARTICLES Powered by AnyClip Privacy Policy Keyboard ShortcutsWord
6.A financial instrument, such as a stock or bond, representing rights of ownership or creditorship and often traded in secondary markets. [Middle Englishsecurite, from Old French, from Latinsēcūritās, fromsēcūrus,secure; seesecure.]
Beta is a way of measuring a stock’s volatility compared with the overall market’s volatility. By definition, the market as a whole has a beta of 1, and everything else is defined in relation to that: Stocks with a value greater than 1are more volatile than the market, meaning they...
Learn how to read stock charts Cash effectively has a beta of zero, because its value has no correlation with any stock market index. Cash doesn’t increase or decrease in value along with the S&P 500. Some investments — such as put options— have negative betas, meaning that they would...
The alpha value meaning of a stock is a metric that shows the investors and fund managers how much better or worse that stock price performed versus the overall stock market index, or benchmark. Unlike beta values which have a baseline level of 1, the alpha level base value is 0. The ...
Learn what beta is in finance. Learn how to calculate the beta of a stock by describing the beta finance formula and what the different values of...
earnings. This volatility is thefinancial leveragethat makes the firm more sensitive to changes in the stock prices. The beta coefficient represents the impact of financial leverage on a firm’s performance and therefore, it has to be unlevered to facilitate the comparison to other firms in the ...