Definition
Beta measures systemic risk and indicates how a stock's price moves relative to the market. A beta of 1 means the stock moves with the market, greater than 1 indicates higher volatility than the market, and less than 1 indicates lower volatility.
Formula
贝塔 = 协方差(股票收益, 市场收益) / 方差(市场收益)
Example
A stock with a beta of 1.5 is expected to move 1.5% for every 1% move in the market. If the market rises 10%, the stock might rise 15%.
FAQ
What is Beta?
A measure of a stock's volatility relative to the overall market.
How do you calculate Beta?
A common formula for Beta is: 贝塔 = 协方差(股票收益, 市场收益) / 方差(市场收益)
Why is Beta important?
Beta helps investors evaluate risk and make more informed decisions.