Definition:
Beta
Back to Finance Glossary | Previous Page
The Beta (β) of a stock or portfolio is a number describing the correlation of its returns with that of the greater financial market.A positive Beta means the stock moves in the same direction as the market. A negative Beta means it moves in the opposite direction of the market. A Beta of zero means the stock has no correlation with the market and moves independently of it.
Beta is used as a coefficient in the capital asset pricing model (CAPM).
Latest Articles Related to Beta
Read: 1,090 times
January 29, 2011 | Adam Fish
Read: 4,372 times
January 22, 2011 | Adam Fish
Read: 1,271 times
Back to Finance Glossary | Previous Page
This web site is intended only to convey information. It is not to be construed as an investment guide or as an offer or solicitation of an offer to buy or sell any securities. The author has taken all usual and reasonable precautions to determine that the information contained in this website has been obtained from sources believed to be reliable.