Beta (finance)
in finance, number describing the correlated volatility of an asset in relation to the volatility of the benchmark
Beta is a financial measurement of an assets' sensitivity to a certain weight. Typically, this weight is the S&P 500.[1] Beta uses past performance, and cannot predict future results.
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Beta is calculated by dividing the covariance of returns between the index, and the stock, to the variance for the index returns.[2]
References change
- ↑ "Beta". Investopedia. Retrieved 2022-04-23.
- ↑ "Beta Coefficient". Corporate Finance Institute. Retrieved 2022-04-23.