Define beta stock. beta stock synonyms, beta stock pronunciation, beta stock translation, English dictionary definition of beta stock. n any of the second rank of active securities on the Stock Exchange, of which there are about 500. Continuous display o
The calculation of beta in stocks is done as follows: [(n) (sum of (xy)) ]-[(sum of x) (sum of y)] [(n) (sum of (xx)) ]-[(sum of x) (sum of x)] Here: n = # of observations (24-60 months) x = return rate for the S&P 500 Index y = return rate for the stoc...
Define beta coefficients. beta coefficients synonyms, beta coefficients pronunciation, beta coefficients translation, English dictionary definition of beta coefficients. n. 1. The second letter of the Greek alphabet. See Table at alphabet. 2. The second
Typically, volatility is a sign of risk, with higher betas suggesting greater risk and lower betas projecting lower risk. Thus, stocks with more significant betas may gain more duringbull markets. However, these stocks may also have more significant losses inbear markets. Beta can be used to h...
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.
But wait: Why can't aging investors latch on to a fast-moving high-beta stock like Apple? They can and do. Indeed, it's wise to hold a few high-beta stocks in an otherwise low-beta portfolio. They can add some growth to a portfolio that is otherwise mostly focused on income. ...
Definition of Beta (Mutual Funds) Beta (Mutual Funds) The measure of a fund's or stocks risk in relation to the market. A beta of 0.7 means the fund's total return is likely to move up or down 70% of the market change; 1.3 means total return is likely to move up or down 30...
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...
Consider betas for all stocks j in period 1, βj1, and betas for the same stocks j in the successive period 2, βj2. Further, the betas in period 2 are regressed against the betas for period 1 to obtain the following equation:
The Beta coefficient is a measure of sensitivity or correlation of a security or an investment portfolio to movements in the overall market.