The measure of risk associated with general market or economic conditions. This systematic risk cannot be "diversified away." Beta is used in the TaraFolio(tm) engine to optimize portfolios of securities.
A prediction of what percentage a position will move in relation to an index. If a position has a BETA of 1, then the position will tend to move in line with the index. If the beta is 0.5 this suggests that a 1% move in the index will cause the position price to move by 0.5%. Beta is not calculated in OptionVue 5, and should not be confused with volatility. Note: Beta can be misleading. It is based on past performance, which is not necessarily a guide to the future.
A measure of the market risk of a portfolio showing how responsive the fund is to a given market index. By definition, the beta of the benchmark index is 1.00. A fund with a beta of greater than one is typically more sensitive than the benchmark to the direction of overall market movements.
It measures the sensitivity of a fund's return to changes in the Standard & Poor's 500 Index. It is commonly referred to as "market-related risk". It measures the historical percentage change in the fund's rate of return accompanying a 1% change in the index return. Funds with a beta of 1.00 are, by definition, as volatile as the market index. Funds with a beta of 0.50 are half as volatile.
Coefficient measuring a stock's relative volatility. The beta is a covariance of the stock in relation to the rest of the stock market. The Standard & Poor's 500 Stock Index has a beta coefficient of 1. Any stock with a higher beta is more volatile than the market, and any with a lower beta can be expected to rise and fall more slowly than the market. A conservative investor whose main concern is preservation of capital should focus on stocks with low betas, whereas one willing to take high risks in an effort to earn high rewards should look for high-beta stocks.
A statistical measure of the volatility of a security compared to an underlying , such as the S&P 500. If a stock or mutual fund has a beta of 1.0, its price would be expected to rise and fall with the same volatility as the index. If a stock or mutual fund has a beta of 1.3, its price would be expected to rise by 1.3% when the index rises by 1.0%, and to fall by 1.3% when the index falls by 1.0%. Beta, along with alpha and R-squared, are key components of Modern Portfolio Theory. You can look up the beta for a mutual fund in the Vision Mutual Fund Center, and you can also use it as a mutual fund screening criterion. See also Sharpe ratio.
A measure of an asset's volatility relative to its benchmark. Beta is calculated using monthly returns for the past three years. The beta of the benchmark, or index, is 1.00. So a fund with a beta coefficient of 1.00 has experienced up and down movements of roughly the same magnitude as the market. Generally, a fund with a beta of 1.25 is expected to do 25% better than its benchmark in an up market and 25% worse in a down market. Conversely, a fund with a beta of .75 is expected to do 25% worse than its benchmark in a rising market and 25% better in a falling market. A low beta, however, does not necessarily mean lower volatility -- just that the fund does not have a high correlation with its benchmark.
The beta is the covariance of a stock in relation to the rest of the stock market. It measures a stock's relative volatility.
A measurement that quantifies the correlation between the movement of a stock and the movement of the stock market as a whole. This is not to be mistaken with volatility.
A measure of a fund's risk, or volatility, compared to the market which is represented as 1.0. A fund with a beta of 1.20 is 20% more volatile than the market, while a fund with a beta of 0.80 would be 20% less volatile than the market.
Beta is a measure of the correlation between the value of a security and the market. Beta is used to calculate discount rates for CAPM.... more on: Beta
A measure of market sensitivity; i.e. the extent to which a share or a portfolio fluctuates with the market. Beta is a statistical estimate, based on historical data, of the average percentage change in a fund's or a security's rate of return corresponding to a one percent change in the market. Note that the market has a beta of 1. Therefore a security (or portfolio) with a beta of 1.2 might be expected to perform some 20% better than the market when it rises, and 20% worse when it falls. Similarly, a beta of 0.5% implies a movement equal to only half the market's rise or fall. A share with a beta of 1 is exactly as volatile as the market.
A measure of volatility and risk which reflects the degree to which the price of a security or portfolio tends to rise or fall with the market. The higher the beta, the higher the volatility.
Beta measures the sensitivity of the price of a particular asset to changes in the market as a whole. If a company's shares have a beta of 0.7 it implies that the share price will change by 0.7% if there is a 1% move in the market.
A measure of how closely the movement of an individual stock tracks the movement of the entire stock market.
Beta (market sensitivity) is a measure of the extent to which a fund’s portfolio fluctuates with the market as represented by the S&P 500. To calculate beta, the sensitivity of the fund’s portfolio to market patterns is measured. Beta is a statistical estimate of the average change in the fund’s rate of return corresponding to a 1% change in the market.
A measure of an investment's volatility relative to a chosen benchmark. For stocks or stock funds, the benchmark is usually the S&P 500. For bonds or bond funds, it is Treasury bills. The beta of the benchmark is always 1.00. So a stock fund with a beta of 1.00 has experienced up and down movements of roughly the same magnitude as the S&P 500. Meanwhile, a fund with a beta of 1.25 is expected to do 25% better than the S&P in an up market and 25% worse in a down market. Generally speaking, the higher the beta, the more risky the investment. But without a high R-squared, a beta statistic can be meaningless. R-squared determines how much an investmentâ€(tm)s return is correlated to its benchmark. Also, see alpha.
a measure of volatility of a public stock relative to an index or a composite of all stocks in a market or geographical region. A beta of more than one indicates the stock has higher volatility than the index (or composite) and a beta of one indicates volatility equivalent to the index (or composite). For example, the price of a stock with a beta of 1.5 will change by 1.5% if the index value changes by 1%. Typically, the S&P500 index is used in calculating the beta of a stock.
An estimate of an investment's volatility compared to its benchmark index. The lower the beta, the less risky the investment.
Measure of the responsiveness of a security such as sector fund or stock to market movements.
A statistical measure of a security's or portfolio's volatility (price fluctuations) relative to the market as a whole. (The beta of the overall market is defined as 1, and is represented by the S&P 500® Index over the last 36 months). A security with a beta of 1 indicates its price moves exactly with the overall market. A beta greater than 1 is more volatile than the overall market, while a beta less than 1 indicates that the security's price is more stable than the market (in general and over a long time period).
A measure of the company specific risk. This relates the expected share price move to the move in the market as a whole. A beta of 1.0 means that the share price is expected to track the market closely. A beta of 1.2 means that a 10% move in the market is expected to result in a 12% (10% * 1.2) move in the share price. Beta can be determined using either one of two principals: either using historic trends (say, over 5 years), on the assumption that historic relationships will hold in the future (the company will not fundamentally change); or a second method estimates future beta using a number of quantitative and qualitative factors.
indicates the volatility of a stock's price relative to the general stock market. A beta greater than 1 indicates higher price volatility relative to the S&P 500 Index. The Beta is calculated using 60 month-end observations, which are plotted against the S&P 500 Index
It is a measure of a securities risk. Each security has a certain amount of risk attached to it. Beta tries to measure the risk involved with each security. Thus an investor should choose a security which gives the highest return for a given risk level.
A measure of the level of financial risk in a company. It is one of the factors used to determine what kind of return an investor should expect.
Beta is a measure of an investment's relative volatility. The higher the beta, the more sharply the value of the investment can be expected to fluctuate in relation to a market index. Betas as low as 0.5 and as high as 4 are fairly common, depending on the sector and size of the company. However, in recent years, a number of experts have disputed the validity of assigning and using a beta value as an accurate predictor of share performance.
The measure of a stock's volatility in relation to the market. A beta of 0.7 means the stock's price is likely to move up or down 70% more than the market; 3 means the price is likely to move up or down 30% more than the market. Beta is referred to as an index of the systematic risk due to general market conditions that cannot be diversified away.
A measure of an investment's volatility. The lower the beta, the less risky the investment.
Beta is a statistical measure of how volatile a fund's returns have been compared with an appropriate benchmark index such as the S&P 500 Index. The beta of every index is 1.00, no matter how volatile the index is. If a fund's beta is higher than 1.00, its returns have fluctuated more than its benchmark's. A beta lower than 1.00 means the fund has been less volatile than the benchmark.
A percentage reflecting the relative volatility of the subaccounts in a variable annuity as compared to the market as a whole (often determined using the S&P 500). A value greater than 1 percent is indicative of volatility over the market.
1) A prediction of what percentage a security will move in relation to an index. If a security has a beta of 1, then the position will tend to move in line with the index. If the beta is 0.5 this suggests that a 1% move in the index will cause the security price to move by 0.5%. 2) Measure of how the Options market correlates to the movement of the underlying market.
The relative move of a stock (or portfolio) against the market. A security with a Beta of 1 would be expected to move in line with the index. Higher Beta stocks (or portfolios) are expected to outperform in rising markets and under perform falling markets. Lower Beta stocks (or portfolios) are defensive.
Related to Mutual Funds: Measures a Fund's relative volatility, as compared to a standard market index, such as the S&P 500. (By definition a market's beta will always be equal to one.) A Fund with a higher beta (more than 1) is more volatile than the market. Related to Equities: Beta is used to measure the volatility of a stock's price relative to the general market. The S&P 500 index is used as a proxy for the general market. Betas are shown for all U.S. stocks where a five-year trading history is available. A stock with a higher beta (more than 1) is more volatile than the market and vice versa.
A mathematical measure of the sensitivity of rates of return on a portfolio or a given stock compared with rates of return on the market as a whole. A high beta (greater than 1.0) indicates moderate or high price volatility. A beta of 1.5 forecasts a 1.5% change in the return on an asset for every 1% change in the return on the market. High-beta stocks are best to own in s strong bull market but are worst to own in a bear market.--See also Alpha; Capital-Asset Pricing Model; Characteristic Line; Portfolio Beta.
The relationship between the movement of an individual stock or a portfolio and that of the overall stock market.
This is a historical measure of an investments sensitivity to market movements. Beta is based on historical performance therefore it is not an indication of what the investment performance will be in the future.
The degree of risk which cannot be decreased by diversification. A stock with a beta greater than 1 will rise faster or decline faster than the overall market. A stock with a beta lower than 1 will rise slower or decline slower than the overall market.
The sensitivity of a security's return compared to the return of the market. The overall market will have a beta of 1. If a security has a beta greater than 1, its returns will tend to outpace the market in the same direction. If a security has a beta between 1 and 0, the security's return will move less than the market in the same direction. If the beta is less than zero, the security's return will move in the opposite direction of the market.
the sensitivity of a portfolio (or asset) to a benchmark
A measure of the nondiversifiable risk attached to an investment. For Glossary a stock, it shows how sensitive the stock's return is to changes in the return from all available stocks.
A measure of the sensitivity of a portfolio's rate of return against that of the market. A beta greater than 1.00 indicates volatility greater than the market.
A measure of a security price's movement vs. the overall market. The higher the beta, the greater the volatility.
A measure of a stocks volatility. A stock with a Beta of 2 should be up 20% when the market is up 10%, or down 20% if the market is down 10%.
A measurement of the difference between the performance of a stock and the performance of the market in general.
A measure of a fund's movements relative to the overall stock or bond market. Betas tell you if the fund's monthly returns are greater than, or less than the overall market, and by how much. The stock market, as defined by the S&P 500, or the bond market defined by the Lehman Aggregate Bond index, has a beta of 1.00. Funds with high betas tend to be riskier than, say, an index fund tied to the S&P 500 or Lehman index. Low beta funds are less risky. If the stock or bond market rises or falls 10%, a fund with a beta of 1.4 would be expected to rise or fall 14%. That being said, a fund with a beta of say, 0.5 may not be half as risky as the market, but rather a fund that moves completely independently of the market. That is why you must also refer to a fund's correlation coefficient, or r-squared. Betas in this guide are calculated based on fund returns for the past 24 months. (see also R-Squared, and Relative Volatility.)
A measurement of volatility Beta is calculated using regression analysis. It is a measurement of how much a fund will move in proportion to how the market moves. The Beta of the market is defined as 1.
Analyzes the market risk of a fund by showing how responsive the fund is to the market. The beta of the market is 1.00. Accordingly, a fund with a 1.10 beta is expected to perform 10% better than the market in up markets and 10% worse in down markets. Usually the higher betas represent riskier investments.
how a fund or stock's value fluctuates relative to changes in an index like the TSE; an average stock has a beta of 1.0; the lower the number, the lower the variation
A measurement of the relationship between the price of a stock and the movement of the whole market.
A statistical indicator used to measure a stock's risk or volatility relative to the market. The market's beta is always 1.0. In theory, a beta higher than 1.0 indicates that the stock will rise to a greater extent than that of the market in a rising market; similarly, the stock will fall to a greater extent in a falling market. A beta lower than 1.0 indicates that the stock will usually change to a lesser extent than that of the market. .
Measures a fund's sensitivity to market movements. Specifically, beta measures how much a fund's excess returns (returns over Treasury bills) have been tied to the market's excess returns. By definition, the beta of the market is 1.00. A fund with a beta of .85, for example, would have provided excess returns of about 85% of the market's excess return. In a down year, this fund has typically not fallen as much and, in good years, it has typically not advanced as strongly as the market. However, beta is a measure of historical volatility and cannot predict a fund's future performance.
A statistical measure of the relationship between the price volatility of an individual stock or stock portfolio and the price volatility of the overall market. Beta is often used in computing hedge ratios for stock index futures positions.
Beta is the slope of the regression line. Beta measures the risk of a particular investment relative to the market as a whole (the "market" can be any index or investment you specify). It describes the sensitivity of the investment to broad market movements. For example, in equities, the stock market (the independent variable) is assigned a beta of 1.0. An investment which has a beta of .5 will tend to participate in broad market moves, but only half as much as the market overall.
A measure of a stock's sensitivity to the movement of the general market (S & P 500), in either a positive or negative direction over the last 5 years.
A regression of the estimated coefficient that belongs to a particular variable.
A measure of the market/nondiversifiable risk associated with any given security in the market. A ratio of an individual's stock historical returns to the historical returns of the stock market. If a stock increased in value by 12% while the market increased by 10%, the stock's beta would be 1.2.
Coefficient measuring the sensitivity of a share or a portfolio to fluctuations in the overall market. A beta higher than 1 means that the fluctuations in the value of the share are stronger than those in the market as a whole and that its expected return is accordingly higher than the overall market. A beta lower than 1 means that the share is subject to less pronounced fluctuations than the market as a whole and that its expected return is accordingly lower than that of the overall market.
Beta is the relative measure of the sensitivity of an investment's return to changes in the benchmark return.
An estimate of how much a fund's return will move if its benchmark moves by 1 unit. It measures a fund's sensitivity to changes in the market. The higher the beta, the greater potential for outperformance in a rising market, although it carries higher volatility and risk.
A copy of an application which has not completed testing by the manufacturer, but may be on the market already. Usually free.
Beta is a coefficient which measures the volatility of a stock's returns relative to a given market index. A beta of 1 means that the market and the stock move up or down together, at the same rate. That is, 5% up or down move in the market would result in a 5% up or down move in the stock. A beta coefficient of 2 suggests that the stock will tend to fluctuate twice as much as the market. That is, if the market moves up 5%, then the stock would move up 10%. A beta coefficient of 0.5, indicates that the stock will move one-half as much as the market, either up or down. A negative beta indicates the stock tends to move in the opposite direction from the general market. That is, the stock price declines when the overall market is rising, or rises when the overall market is declining. Negative Beta stocks are rare. Beta values are not calculated if less than 24 months of pricing is available.
The measure of a mutual fund's sensitivity to market movements. It measures the relationship between a fund's excess return over t-bills and the excess return of the benchmark index. The beta of the benchmark is 1.00. So a fund with a 1.10 beta is expected to perform 10% better than its benchmark index in up markets and 10% worse in down markets. Conversely, a beta of .85 indicates that the fund is expected to perform 15% worse than the benchmark index in up markets and 15% better in down markets. It's important to note that a low fund beta does not imply that the fund has a low level of volatility; rather, it only means that the fund's market-related risk is low.
The coefficient mearsuring a stock's relative volatility.
The correlation between a security's price movements and the movement of some composite that acts as a proxy for its asset class (typically a broadly-based index such as the S&P 500). A measure of specific risk employed in the CAPM and widely (although not necessarily correctly) used as a shorthand measure of an instrument's riskiness. Calculated as the correlation of the asset to the index, adjusted for the asset's volatility relative to the volatility of the index. § = [covariance of R and I] / RI, where = the standard deviation of the return on the security in question, and I = the standard deviation of the return on the relevant index
A measure of volatitility. Beta is a fund's volatility measured against the benchmark index, which has a set beta of 1. Therefore, if a fund has a Beta higher than 1, it is moving up and down more than the rest of the market. A fund with a Beta of 2 will move up 20 percent when the market rises 10 percent.
Definition - A measure of volatility relative to an index, usually the S&P 500. The higher the beta, the more volatile the stock or portfolio is compared to the index. In essence, it measures how strongly a stock or portfolio of stocks responds to broad market movements. At AmeriCap - Growth stocks generally have higher beta coefficients than value stocks because of the market's expectation of those companies' growth. Because AmeriCap is a large-cap growth manager, the majority of its stocks in its portfolio have a beta relative to the S&P greater than one.
A measure of an asset's sensitivity to changes in the market portfolio (in the CAPM) or to a factor (in the APT). The beta of an asset j is computed as bj = rj,k (sj/sk), where k represents a market factor (such as returns to the market portfolio in the Capital Asset Pricing Model).
A measure of volatility of a stock relative to the overall market. A beta of more than one indicates higher risk than the market and a beta of less than one indicates lower risk than the market.
Beta is the measure of a fund's volatility relative to the market. A beta greater than 1 indicates the security's price will be more volatile than the market; equal to 1, it will move with the market; less than 1, it will be less volatile than the market. Absolute Return Funds can have a negative beta, meaning on average they rise when the market falls and vice versa.
The measure of systematic risk of a security. Beta (or beta coefficient) is a means of measuring the volatility of a security, or a portfolio of securities, in comparison with the market as a whole. Beta is calculated using regression analysis. A beta of 1 indicates that the security's price will move with the market. A beta greater than 1 indicates that the security's price will be more volatile than the market. A beta less than 1 means that it will be less volatile than the market.
An investment measure of price volatility relative to other, competing, investments; in other words the measure of one commodity’s performance against others.
A quantitative measure of a stock’s price volatility relative to the S&P 500.
Is a quantitative measure of a security, basket, or funds behavior relative to the market or benchmark. This relationship typically represents the historic price movement of a specific security against the movement in the S&P 500. A beta of 1.35 would indicate that the security move 1.35 times the movement in the S&P or 35% greater variability. The S&P 500 is considered having a beta of 1.00. Betas less than 1.00 are considered less variable than the market, betas greater than 1.00 are considered more variable than the market and negative betas are considered as inversely related to the market.
A measure of share volatility. High Beta stocks tend to exhibit greater price movement.
The measure of an asset's risk relative to the market portfolio; a measure of systematic risk.
A measurement of the volatility of a stock's price versus the overall market. The percent change in the price of a stock with a beta of 1.00 runs about equal to the percent change in the general market. A stock with a beta of less than 1.00 has better price stability than the market. A stock with a beta higher than 1.00 (say 1.60), tends to be more volatile in price than the market.
An ETF's level of variability of returns, in relation to a market index, usually the S&P 500 index. For example, ETFs with a beta over 1.0 are more volatile than the index, while those with a beta of less than 1.0 are less volatile.
Hedge Funds: market exposure
Beta is a quantitative measure of the volatility of a fund or portfolio, relative to the overall market. A beta above 1 shows that a fund is more volatile than the overall market, while a beta below 1 represents a fund which is less volatile.
measure of systematic risk of an asset.
The measure of an asset's risk in relation to the market (for example, the S&P500) or to an alternative benchmark or factors. Roughly speaking, a security with a beta of 1.5, will have move, on average, 1.5 times the market return. [More precisely, that stock's excess return (over and above a short-term money market rate) is expected to move 1.5 times the market excess return).] According to asset pricing theory, beta represents the type of risk, systematic risk, that cannot be diversified away. When using beta, there are a number of issues that you need to be aware of: (1) betas may change through time; (2) betas may be different depending on the direction of the market (i.e. betas may be greater for down moves in the market rather than up moves); (3) the estimated beta will be biased if the security does not frequently trade; (4) the beta is not necessarily a complete measure of risk (you may need multiple betas). Also, note that the beta is a measure of comovement, not volatility. It is possible for a security to have a zero beta and higher volatility than the market.
A statistical measure of an asset's sensitivity to market movements. If an asset's price movements are exactly aligned with those of the market as a whole, the security has a Beta of 1. A Beta of less than 1 means that the security tends to move in line with the market (e.g. goes up in price when the market rises and down in price when it falls), but to a lesser degree than the market. A Beta of more than 1 means that the security tends to move in line with the market, but to a greater degree than the market. A Beta of 0 means that the stock's price movements are not correlated to the market at all. A negative Beta means that the stock moves in an opposite direction to the market, rising when the market falls and falling in price as the rest of the market rises.
A statistic generated through regression analysis of stock returns that compares the price sensitivity of a single stock or small group of stocks in relation to a larger group or index of stocks. If, for example, the stock of AT&T has a beta of 0.85 in relation to the MMI, it would be expected to fluctuate at the rate of 85 percent of the fluctuation for the index.
Beta is the statistical estimate of the average change in the portfolio's rate of return corresponding to a 1% change in its relevant Benchmark. When used in terms of the S&P 500 Index, the index is given a value of 1.0. Stocks with a beta greater than 1.0 have in the past 12 months been more volatile than the market; those with a beta of less than 1.0 have been less volatile. Beta is only an estimate, and for it to be accurate, there needs to be a perfect correlation between the two series being compared.
A measure of volatility that tells how much a stock moves in relation to an index or average. A beta of 1.5, for example, means that the stock may move 50%, either up or down, more than the Dow Jones industrials, or other indicator on which it is based.
The measure of a fund's or stock's risk in relation to the market. A beta of 0.8 means the fund's total return is likely to move up or down 80% of the market change; 1.2 means total return is likely to move up or down 20% more than the market. Beta is referred to as an index of risk due to general market conditions that cannot be diversified away.
The various factors that influence the economy and financial markets in general, affect different investments to a different degree. Beta is the primary measure of this market risk of an investment. It measures the volatility of an investment in relation to the overall market. The overall market has a Beta of 1. A beta above 1 is more volatile than the overall market, while a beta below 1 is less volatile
A statistical term used to measure the sensitivity of an investment to market movements. A Beta greater than 1 indicates that the investment will amplify market trends.
A quantitative measure of the volatility of a given stock, mutual fund, or portfolio, relative to the overall market, usually the S&P 500. Specifically, the performance the stock, fund or portfolio has experienced in the last 5 years as the S&P moved 1% up or down. A beta above one is more volatile than the overall market, while a beta below one is less volatile. See also alpha, modern portfolio theory.
Measures a stock's volatility when compared to the volatility of the market as a whole. Stocks with a beta of more than one are more volatile than the market. Those with a beta of less than one have lower volatility and tend to move at a slower pace than the market.
A measure of share price volatility. High beta shares move up, and down, by more than the stockmarket as a whole.
The co-efficient which measures the degree of correlation between the returns on shares in a particular company and returns on the stock market as a whole. In the Capital Asset Pricing Model, the higher the firm's Beta, the greater is the systematic riskiness of an investment in that firm's shares (a Beta coefficient of one implying that the firm is of average risk).
A measure of the relative trend of the stock to the market as measured by MPT Review. When the stock trend moves faster than the market Beta ( 1) or slower than the market Beta ( 1) or in an opposite direction to the Beta ( 0) (negative #). MPT Review measures Beta from total return figures rather than price.
Measures the sensitivity of rates of return on a fund to general market movement. If the market, or , has a beta of 1.0, the price of a portfolio with a beta of 1.30 would be expected to rise or fall by 13% when the overall market increased or decreased by 10%. The higher the beta, the greater the risk.
A measure of a security`s volatility relative to the market. A beta above 1 indicates that the security is more volatile than the market; a beta below 1 indicates that a security is less volatile than the market.
is a statistical measure of risk that depicts a fund's volatility relative to the index. Beta is expressed in percentage terms. A beta factor of more than 100% reflects a higher level of volatility compared to the index, and vice-versa. Beta is only indicative for funds with a relatively high correlation with the index. In other words, the higher R-Squared is, the more relevant the fund's Beta.
A measure of systematic risk of a stock; the tendency of a stock’s price to correlate with changes in a specific index.
This measures the volatility of a share of stock. A high beta stock, for example, will rise more in value than the stock market average on a day when shares in general are rising. And it will fall more sharply than the average on a day when shares are falling. The Standard & Poor's 500 Index of stocks, an index that represents large-company stocks, has a beta of 1.
It shows the sensitivity of the fund to movements measured against the benchmark. A beta of more than 1 indicates an aggressive fund and the value of the fund is likely to rise or fall more than the benchmark. A beta of less than 1 implies a defensive fund that will rise or fall less than the benchmark. A beta of 1 indicates that the fund and the benchmark will react identically.
the beta of a rate or price is the extent to which that rate or price follows movements in the overall market. If the beta is greater than one, it is more volatile than the market; if the beta is less than one, it is less volatile.
Beta is a measure of a company's common stock price volatility relative to the market. The Beta is the slope of the 60 month regression line of the percentage price change of the stock relative to the percentage price change of the respective stock exchange. Beta values are not calculated if less than 24 months of pricing is available.
This measures the volatility of a security against the market. If a stock has a beta 1, the stock will move with the market. If the beta was less than 1, it means that the stock is less volatile than the market. If the beta is higher than 1, the stock is more volatile than the market.
A measure of a stock's risk relative to the market, usually the Standard & Poor's 500 index. The market's beta is always 1.0; a beta higher than 1.0 indicates that, on average, when the market rises, the stock will rise to a greater extent and when the market falls, the stock will fall to a greater extent. A beta lower than 1.0 indicates that, on verage, the stock will move to a lesser extent than the market. The higher the beta, the greater the risk.
A measure of risk relative to the overall market. The market Beta is set at 1.0. The asset's Beta greater than 1.0 indicates the asset's volatility (risk) greater than that of the market, and Beta less than 1.0 indicates the asset's volatility (risk) lower than that of the market (see also "Systematic Risk" below).
A volatility measurement of a fund or stock versus the Standard & Poor’s 500 Stock Index. A fund or stock with a higher beta than the Standard & Poor’s 500 will rise or fall greater. To the contrary, a stock or a fund with a low beta will rise or fall less.
A relative (to a benchmark) measure of risk. Measures of an asset's non-diversifiable -- market-- risk. See also systematic risk. Bloopers & Blunders: Definition.
A measure of an asset's sensitivity to an underlying index or factor. For example, an asset with beta of 1.2 would be expected to return 12 percent if the market returned 10 percent, and -12 percent if the market returned -10 percent. Beta is computed as an asset's correlation with the index times the ratio of the asset's standard deviation to the index's standard deviation.
The beta coefficient measures an investment's relative volatility or impact of a per-unit change in the independent variable (market) on the dependent variable (portfolio), holding all else constant. The beta of a portfolio is its covariance in relation to the market. The market portfolio has a beta coefficient of 1. A higher (lower) beta would imply more (less) volatility.
A measure of the magnitude of a portfolio's past share-price fluctuations in relation to the ups and downs of the overall market (or appropriate market index). The market (or index) is assigned a beta of 1.00, so a portfolio with a beta of 1.20 would have seen its share price rise or fall by 12% when the overall market rose or fell by 10%.
Measure of a fund's volatility relative to the market. The beta takes into consideration the fund's standard deviation and correlation coefficient compared with its reference index. If a fund has the same volatility as the index, it has a beta of 1. Similarly, if the fund has a standard deviation above the index, it has a beta above 1. And a fund has a beta under 1 if it is less volatile than the index.
One measurement of a portfolio's volatility relative to a broad market index.
Beta represents the systematic risk of a portfolio and measures its sensitivity to a benchmark. The beta of the market is 1.00. A beta greater than 1.00 indicates the fund will be more sensitive to market movements both upwards and downwards. Likewise, a beta less than 1.00 indicates the fund will be less sensitive to upward and downward market movements.
A quantitative measure of the volatility of a given stock, mutual fund, or portfolio, relative to the overall market, using a benchmark like the S&P 500. A beta above 1 is more volatile than the overall market, while a beta below 1 is less volatile.
a measure of a security’s volatility relative to a benchmark; commonly used to determine the volatility of a stock relative to the S&P 500 or another selected benchmark; a stock with a beta of greater than 1 relative to the S&P 500 is said to be more volatile than the S&P 500 and a stock with a beta of less than 1 is said to be less volatile than the S&P 500
It is the measure of the relative sensitivity of a stock or mutual fund to the market. The market is assigned a beta of 1. The higher the beta, the more sensitive the stock or fund is considered to be relative to the market as a whole. In other words, funds with beta more than 1 will react more to any fluctuaitons (whether upward or downward) in market than funds with beta less than 1.
A measurement that tells you how widely a stock or mutual fund's price deviates from the market index it's compared to. For example, TSE300 Index is assumed to have a beta of 1.0. A stock in that group with a beta of 1.25, would have a price that's expected to be 25% more volatile than the index. This stock would outperform the TSE 300 by 25% in a rising market, but fall 25% more when the market is falling.
The degree of sensitivity of a stock in relation to swings in the market.
A way of measuring the volatility of a particular stock relative to the overall market. If a stock's beta is 1, it means that its price rises and falls in direct relationship to the movement of the market. If a stock's beta is less than 1, it means that the stock is less volatile than the overall market. If the stock's beta is greater than 1, it means that a stock is more volatile than the overall market.
This is the measure of the volatility of a share of stock. A high beta stock will rise more in value than the stock market average on a day when shares in general are rising. Conversely, the stock with a high beta will experience a more rapid fall than the average on a day when shares are falling. The Standard & Poor's 500 Index of stocks has a beta of 1.
A measure of market risk and the extent to which the returns on the stock or stock portfolio move with the overall market for stocks as measured by some bond stock index; the risk that investors incur by investing in a specific firm's equity
The slope coefficient of a regression equation.
A measurement of a security's or portfolio's volatility in comparison with the market as a whole. Beta of 1- price will move within the market; Beta more than 1- price will be more volatile than the market; Beta less than 1- price will be less volatile than the market.
The indicator used by Value Line to measure a stock's risk relative to the market, in this case the NYSE Index. The market's beta is always 1.0 (Based on past statistical records, a beta higher than 1.0 indicates that when the market rises, the stock will rise to a greater extent than that of the market; likewise, when the market falls, the stock will fall to a greater extent. A beta lower than 1.0 indicates that the stock will usually change to a lesser extent than that of the market. The higher the beta, the greater the investment risk.)
A measure of an investment's volatility, or systemic risk, in comparison to the market (or benchmark) as a whole. A managed futures program with a beta of one means returns move in line with the market; greater than one means returns are more volatile than the overall market; less than one, less volatile than the overall market.
The slope of the market model for the asset, which measures the degree to which the historical returns on the asset change systematically with changes in the market portfolio's return. Hence, beta is referred to as an index of that systematic risk due to general market conditions that cannot be diversified away.
a relative measure of historical volatility of an individual stock's price in comparison to overall changes in the New York Stock Exchange Composite Index. A Beta of 1.25 indicates a stock leans towards rising or falling 25% more than the New York Stock Exchange Composite Index . More accurate "betas" are figured over a five year period. In the event a stock has a shorter trading history, a smaller time period may be used, but at least a two year minimum is necessary. A beta for a stock that moves in exact tandem with the NYSE Composite Index would be a beta of 1.00.
A risk measure, in terms of statistical volatility of a stock relative to the overall stock market.
Beta measures the volatility of a stock's returns relative to the S&P 500. It is based on a 36-month historical regression of the return on the stock compared to the return on the S&P 500. For example, a beta of 1.5 indicates that a stock tends to move 50% more than the S&P 500 in the same direction. So if the S&P rises 10%, the stock will rise 15%; but if the S&P falls 10%, the stock will fall 15%. Generally speaking, the higher the beta, the more risky the investment.
Beta describes the sensitivity of a fundâ€(tm)s performance to the return of its market index. A beta value of 1.0 means that a fund moves exactly in-line with expected changes to the market whilst a fund with a beta value of greater than 1.0 (aggressive position) means that its magnitude of change will be larger than any expected market change. The converse is true for funds with a beta value of less than 1.0 (defensive position).
A beta is a mathematical indicator that ties price movements of individual funds to the movements of a financial market benchmark, such as the TSX 300 Index. If a fund's beta equals 1, the unit price of that fund will fluctuate in step with the market. If a fund's beta is less than 1, that fund's unit price will tend to fluctuate less than the market. Finally, if the fund's beta is greater than 1, the fund's price will fluctuate more than the market.
A measure of a stock's volatility or changes in price, as compared with changes in other stocks. Stocks with a high beta are more likely to change dramatically.
The co-efficient which calculates the level of correlation between returns on shares in a given company and stock market returns as a whole. In the Capital Asset Pricing Model, if the firm has a higher a Beta level, there is a greater systematic riskiness of investing in that firm's shares (a Beta coefficient of one implies that the firm is of an average risk).
() A statistical measure that indicates the degree of variability of an asset's returns as compared to the returns of a market benchmark. More simply put, it tells whether one particular fund has more or less market risk than its benchmark, typically the S&P 500 Index. When beta is greater than one, a fund has greater sensitivity to market factors than the S&P 500 Index; when beta is less than one, it has less sensitivity.
A coefficient measuring a stock's volatility in relation to the rest of the market. The S&P 500 Stock Index has a beta of 1. Any stock with a higher beta is more volatile than the market as a whole, and any with a lower beta is expected to rise and fall more slowly than the market.
The measure of a security's sensitivity to movements in the stock market as a whole. Securities with betas near 1.0 move closely in tandem with the overall market. Those with betas of less than 1.0 tend to have less volatility than the overall market. Those with betas greater than 1.0 tend to have more volatility than the overall market.
Beta is referred to as an index of the systematic risk due to general market conditions that cannot be diversified away. It is the measure of a stock's riskiness as compared to the market. A stock with a beta of 2 means that the stock's excess return is expected to move 2 times that of the market. Thus, for this particicular stock, if the market's excess returns are 5%, the expected stock's excess returns are 10%. You can use the formula for beta to analyze securities in your Marketocracy funds. The beta equation used for stocks is below. {[(n)*(sum of (xy))]-[(sum of x)*(sum of y)]} / {[(n)*(sum of (xx))]-[(sum of x)*(sum of x)]} In this equation: n = # of observations (24-60 months) x = rate of return for the S&P 500 Index y = rate of return for the stock Beta is the slope coefficient when you regress excess returns for stock y onto the excess returns for the market x. You can use this equation to find the beta of the securities that you hold or for your Marketocracy fund.
The measure of a fund's or stocks risk in relation to the market, or an alternative benchmark. A beta of 1.5 means that a stock's excess return is expected to move 1.5 times the market excess returns. E.g. if market excess return is 10% then we expect, on average, the stock return to be 15%. Beta is referred to as an of the systematic risk due to general market conditions that cannot be diversified away.
The degree to which the returns of an investment result from the returns of a specific index or benchmark. Beta can also be viewed as systematic risk, i.e. the tendency of a security's returns to respond to swings in the market. A beta of 1 indicates that the security's price will move with the market. A beta less than 1 means that the security will be less volatile than the market. A beta greater than 1 indicates that the security's price will be more volatile than the market. For example, if a stock's beta is 1.2 it's theoretically 20% more volatile than the market.
This is a measure of market risk. It determines how volatile a share price is (ie how much a share tends to rise and fall over a period). The beta measures the distance between the high points and the low points, so the higher a share's beta, the more volatile it is. If you're investing for the long term, volatility doesn't matter much. However, if you're a short-term speculator, a highly volatile share can offer big rewards but also big potential losses if your timing is off.
A statistical estimate, based on historical data, used to measure market- sensitivity. Beta is the average percentage change in a fund's or a security's rate of return corresponding to a one percent change in the market (See also Alpha).
A coefficient (ß) measuring a stock's relative volatility to a market index, such as the S&P 500 Index. A manager with a Beta greater than 1.0 is more volatile than the market, while a manager with a Beta less than 1.0 is less volatile than the market. Sometimes known as market specific risk.
A figure that indicates the historical propensity of a stock price to move with the stock market as a whole. The lowest theoretical Beta is zero indicating no movement. The highest Beta is 2 indicating wild gyrations for small movements in the market.
A statistical measure of the price volatility of a security in relation to the entire stock market's volatility. For example, if the stock market should increase 10%, the price of a stock with a Beta of 2 should increase 20%. A Beta of 2 indicates a stock which is twice as volatile as the market as a whole (vs. Alpha).
a relative measure of the historical sensitivity of the stock's price to overall fluctuations in the New York Stock Exchange Composite Index. A Beta of 1.50 indicates a stock tends to rise (or fall) 50% more than the New York Stock Exchange Composite Index. The ''Beta coefficient'' is derived from a regression analysis of the relationship between weekly percentage changes in the price of a stock and weekly percentage changes in the NYSE Index over a period of five years. In the case of shorter price histories, a smaller time period is used, but two years is the minimum. The Betas are adjusted for their long-term tendency to converge toward 1.00.
This volatility measure is supposed to give you some sense of how far the fund will fall if the market takes a dive and how high the fund will rise if the bull starts to climb. A fund with a beta greater than 1 is considered more volatile than the market; less than 1 means less volatile. So say your fund gets a beta of 1.15 -- it has a history of fluctuating 15% more than the S&P. If the market is up, the fund should outperform by 15%. If the market heads lower, the fund should fall by 15% more.
Measure of a stock's volatility in relation to the market. 0.7 means a stock price is likely to move up or down 70 % of the market change; 1.3 means the stock is likely to move up or down 30 % more than the market.
The measure of a fund's volatility in relation to the market. 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 % more than the market.
A measure of the variability of rate of return or value of a stock or portfolio compared to that of the overall market. Also, a measure correlating stock price movement to the movement of an index. Beta is used to determine the number of contracts required to hedge with stock index futures or options on futures.
The fluctuation in value of a share in comparison with that of the market generally.
A measure of the relative volatility of a stock or other security as compared to the volatility of the entire market. A beta above 1.0 shows greater volatility than the overall market, and a beta below 1.0 is less volatile.
a measure of an investment's volatility relative to its benchmark; generally, a higher beta means that a fund is more volatile than a similar fund; a beta lower than 1 usually means that the fund is less volatile than its benchmark.
A measure of the relative volatility of a security or portfolio to the market's upward or downward movements. A beta greater than 1.0 identifies an issue or fund that will move more than the market, while a beta less than 1.0 identifies an issue or fund that will move less than the market.
A measure of risk commonly used to compare the volatility of mutual funds or stocks to the overall market . The S&P 500 Index is the base for calculating beta and carries a value of 1. Securities with betas below 1 are less risky than the market as a whole. Betas above 1 are more risky. A beta of 1.3 is 30% more volatile than the S&P 500. Betas with negative values are inversely related to the S&P 500. Note: The beta of precious metals can be low but these funds have high price volatility. You cannot compare the beta of bond funds against the beta of equity funds, because the bond fund beta is calculated using the Shearson Long Bond Index rather than the S&P 500 Index.
Gauges the risk of a fund by measuring the volatility of its past returns in relation to the returns of a benchmark, such as the S&P 500 index. A fund with a beta of 0.7 has experienced gains and losses that are 70% of the benchmark's changes. A beta of 1.3 means the total return is likely to move up or down 30% more than the index. A fund with a 1.0 beta is expected to move in sync with the index.
A statistical measure of the price volatility of a security in relation to the entire stock market's volatility. For example, a Beta of 2.0 indicates a stock that is twice as volatile as the market as a whole. Often referred to as Systematic Risk. See also: Alpha.
This is the relative measure of the sensitivity of a fund's performance compared to the development of its benchmark index. Beta indicates the variation in the fund's performance following a 1% variation in the performance of the index. It may be negative or positive. E.g. beta equals 1.2 means that a rise or fall in the performance of the benchmark of 1% results on average in a rise or fall in the performance of the fund of 1.2%. A beta equal to 1 means that the fund is performing in line with its benchmark. When the beta of a fund is greater than 1, the fund magnifies the bearish or bullish tendency of its benchmark. Conversely, if the beta is less than 1: the fund is tracking the tendencies of the benchmark.
statistical measure of risk of a stock or mutual fund
A historical measure of an investment's sensitivity to market movements. By definition, the beta of the market (as measured by the benchmark) is 1.0. A beta of less than 1.0 indicates that the investment is less sensitive to the market, while a beta of more than 1.0 indicates that the investment is more sensitive to the market. Generally, the higher the correlation between the investment and the market (as measured by R-squared), the more meaningful is beta. Because beta is based on measurements of past performance, it is not an indication of what the investment's performance will be in the future.
Used to measure the risk or volatility of a stock or portfolio relative to the specified benchmark. It represents the change in return for every 1% change in the index. Sometimes known as market specific risk.
a measure of systematic risk of a security; the tendency of a security's returns to correlate with swings in the broad market.
Beta is the measure of a fund's volatility relative to the market. (Almost all fund managers correlate themselves to the S&P 500). A beta of greater than 1.0 indicates that the fund is more volatile than the market, and less than 1.0 is less volatile than the market. For example, if the market rises 1% and a fund has a beta greater than 2.5, the fund will rise, on average, 2.5%. For a fund with a beta of 0.4, if the market rises 1%, the fund will rise on average, 0.4%. The relationship is the same in a falling market. (Please note that funds can have a negative beta, meaning that on average they rise when the market falls and vice versa).
A statistic that indicates a fund's historic volatility relative to its benchmark index: A fund with a beta of 1 will be expected to move in line with its benchmark index A fund with a beta of over 1 will be expected to be more volatile than any move in its benchmark index A fund with a beta of less than 1 will be expected to be less volatile than its benchmark index
Measures a stock's price volatility relative to price performance of the S&P 500 Index, over a 12-month period. more...
Measures a portfolioâ€(tm)s market risk. By definition, the beta of the market is 1.00. A portfolio with a beta of 1.10 is expected to perform 10% above market during “up†periods, and 10% below market during “down†periods.
Beta measures a fund's sensitivity (volatility) to changes in the overall market. The overall market performance is normally represented by the fund's relevant index benchmark. A fund achieving a Beta of 1.0 would, all other things being equal, be expected to perform exactly in line with its benchmark. A fund with a Beta of 1.1 would, under the same circumstances, be expected to achieve a return 10% greater than the sector benchmark. In rising markets this would lead to likely outperformance and conversely in falling markets underperformance. Similarly a Beta of 1.2 implies more substantial outperformance potential on the upside, but worse on the downside. However please note in the case of all Standard & Poor's fund reports the Beta quoted refers to the fund's volatility relative to that of the (S&P Workstation) sector average fund, not the sector index benchmark.
A measure of a stocks volatility. A beta of 1.0 means the stock tracks the overall market very closely. A beta of 1.1 means the stock will perform 10% better or worse than the market; 1.2 would be 20%; 1.3 would be 30%; etc. Some stocks such as SIRI have betaâ€(tm)s of 4.3. (as of 4-16-05)
A metric of systematic risk.
A measure of a stock's risk compared to the overall market. A beta of one represents the overall market or average risk for a stock. Stocks with betas greater than one are riskier than the average stock.
A measure of the volatility of a stock relative to the overall market. A beta of less than one indicates lower risk than the market; a beta of more than one indicates higher risk than the market. Generaly the S&P 500 is used as the underlying index to measure the overall market for beta.
A measurement of a stock’s volatility relative to a market index. Thus, a stock with a Beta of 1 will generally move 1% for a 1% move in the underlying index. Remember, Beta figures are not set in stone and a stock’s characteristics can change over time.
A measure of a stock's volatility relative to the market, the market usually defined as “the Standard & Poor's 500 index”. The higher the beta, the greater the volatility. The market's beta is always 1.0; a beta higher than 1.0 indicates that in the past when the stock market has risen, a stock has risen to a greater extent and when the stock market has fallen, a stock has fallen to a greater extent. A beta lower than 1.0 indicates that a stock has moved—either up or down--to a lesser extent than the overall market.
This is a number, expressed in a percentage, that reflects the volatility of the subaccount relative to the overall market (usually the S&P 500). A Beta above 1 percent is usually more volatile than the overall market.
a video tape standard, eclipsed by the inferior VHS standard in the consumer market, but used for high quality video capture. See Hi8.
A statistical term used to illustrate the relationship of the price of an individual security or mutual fund unit to similar securities or financial market indexes.
A measure of systematic (market or non-diversifiable) risk, as distinct from other measures of risk that can be reduced or eliminated through diversification.
Mathematical measure of the sensitivity of rates of return on a portfolio or a given stock compared with rates of return on the market (a diversified portfolio) as a whole. A beta of 1.0 indicates that an asset closely follows the market; a beta greater (smaller) than 1.0 indicates greater (less) volatility than the market. Hence, beta is a measure of risk: the higher the beta, the higher the risk.
Beta measures a fund's sensitivity relative to an index, such as the S&P 500. A Beta above 1.0 means the fund has more sensitivity than the index. A number below 1.0 means it's less sensitive. For example, a Beta of 1.5 means the fund is 50% more sensitive than the index. So a 10% rise in the S&P 500 would be expected to result in a 15% rise in the fund. An investor could also expect a 10% drop in the index to mean a 15% drop in the fund.
A measure of how a stock's movement correlates to the movement of the entire stock market. The Beta is not the same as volatility. See also Standard Deviation and Volatility.
This is a coefficient measuring a security's relative volatility. The beta is the covariance of a stock in relation to the rest of the stock market. For example, the Standard & Poor's (S&P) 500 Stock Index has a coefficient of 1. Any stock with a Beta greater than 1 is more likely to rise and fall with more volatility relative to the general market, and a Beta of less than 1 is more likely to rise and fall with less volatility than the general market.
A measure of a fund's volatility in relation to a securities market, as measured by a stated index. By definition, the beta of the stated index is 1; a fund with a higher beta has been more volatile than the index, and a fund with a lower beta has been less volatile than the index.
A measurement of the relationship between the risk of an individual stock or stock portfolio and the risk of the overall market. The beta is a measure of the sensitivity of an investment's return to market movements. A diversified portfolio of high beta stocks is more risky than a diversified portfolio of low beta stocks.
The Beta of an investment indicates whether or not it tends to move in the same direction as the market, and by how much. Positive Betas indicate that the investment's price generally moves in the same direction as the market, whereas negative Betas indicate that it moves in an opposite direction. The ideal portfolio has a high Beta in rising markets, and a low or negative Beta in falling ones.
A means of measuring the volatility of a stock in comparison to the market as a whole. A beta of 1 indicates that a stock will move with the market. A beta higher than 1 means the stock has higher volatility that the market as a whole.
A measure of a security’s price fluctuations (volatility) relative to an appropriate market index. For example, the Standard & Poor’s 500 Stock Index (S&P 500) has a beta of 1. Stocks with betas greater than 1 are subject to more rapid and extreme price fluctuations than the market. Conversely, price fluctuations for stocks with betas less than 1 are less frequent and smaller than the market. Conservative investors generally seek lower-beta securities, while aggressive investors seek higher-betas.
A measure of how a security or managed investment’s movement correlates to the movement of the entire market. A security or fund with a beta higher than 1 is expected to move up or down more than the market. A beta below 1 indicates a security or fund that usually moves to a lesser extent than that of the market.
Beta is a statistical measure that enables an investor to evaluate the investment risk of a stock or mutual fund by comparing the volatility of each with a stock market index. The S&P 500 Stock Index has a beta coefficient of 1. Any stock or mutual fund with a higher beta is more volatile than the market, and any with a lower beta can be expected to rise and fall more slowly than the market. Thus, if a stock or mutual fund has a beta of 1.0, its price should rise and fall with the same volatility as the S&P 500. In contrast, if a stock or mutual fund has a beta of 1.5, its price should increase by 1.5% when the S&P 500 rises by 1.0%, and its price should decrease by 1.5% when the S&P 500 declines by 1.0%. See: Alpha
The beta coefficient is a means of measuring the volatility of a stock or stock portfolio in comparison with the market as a whole. A beta of 1.0 indicates that the portfolio's price will move with the market. A beta higher than 1.0 indicates that the portfolio's price will be more volatile than the market. A beta of less than 1.0 indicates that the portfolio's price will be less volatile than the market.
A measure of a stock's volatility in relation to the rest of the stock market. The Standard & Poor's 500 Stock Index has a beta of 1. A stock with a beta greater than 1 is more volatile than the market, and any stock with a lower beta can be expected to rise and fall more slowly than the market.
A statistical measure of a security's volatility a... Add a comment
A Greek symbol which in finance relates to the a measure of volatility, or systematic risk in comparing a certain security(s) or portfolio(s) with the market as a whole.
A measure of the volatility (risk) of a stock relative to the overall market. A beta of less than one means less risky than the market; a beta of more than one means more risky than the market.
a measure of a share’s price fluctuation compared to the market
Measures the sensitivity of a fund's performance to general market movement. A higher beta denotes more risk. For example, a fund with a beta of 1.40 is expected to rise or fall 14% when the market (usually represented by an index) moves 10% in either direction.
Measures the volatility of a stock or mutual fund to the market as a whole. When a stock or fund is said to have a beta higher than 1, it is expected to move up or down more than the market. When beta is below 1, the stock or fund is expected to move less than the market.
A measure of the variability of rate of return or value of a stock or portfolio compared to that of the overall market, typically used as a measure of riskiness.
A measure of relative volatility of the price of the instrument to the overall performance of the market
Beta (Î’) is a measure of the volatility of an investment in relation to a market index or benchmark. A beta of 1.0 indicates that the fund will exhibit volatility similar to the market's. A beta of less than 1.0 indicates less-than-market volatility and a beta of more than 1.0 indicates more-than-market volatility. In essence, beta reflects how sensitive the returns of an investment are to the market's movements.
a measure of the systematic risk of a portfolio.
A measure of a portfolio's sensitivity to market movements (as represented by a benchmark index).