Beta is a measure of a stock's volatility in relation to the overall market. ... If a stock moves less than the market, the stock's beta is less than 1.0. High-beta stocks are supposed to be riskier but provide higher return potential; low-beta stocks pose less risk but also lower returns.
Alpha measures the return of an asset compared to the underlying benchmark index. Hence, while beta is a measure of systematic risk and volatility, alpha is a measure of excess return.
Beta is a way of measuring a stock's volatility compared with the overall market's volatility. The market as a whole has a beta of 1. Stocks with a value greater than 1 are more volatile than the market (meaning they will generally go up more than the market goes up, and go down more than the market goes down).
A beta that is greater than 1.0 indicates that the security's price is theoretically more volatile than the market. For example, if a stock's beta is 1.2, it is assumed to be 20% more volatile than the market. Technology stocks and small cap stocks tend to have higher betas than the market benchmark.
Negative beta: A beta less than 0, which would indicate an inverse relation to the market, is possible but highly unlikely. Some investors argue that gold and gold stocks should have negative betas because they tend to do better when the stock market declines. ... Many new technology companies have a beta higher than 1.
Beta could be calculated by first dividing the security's standard deviation of returns by the benchmark's standard deviation of returns. The resulting value is multiplied by the correlation of the security's returns and the benchmark's returns.
A beta greater than 1.0 suggests that the stock is more volatile than the broader market, and a beta less than 1.0 indicates a stock with lower volatility. ... Beta is probably a better indicator of short-term rather than long-term risk.
(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%.
Both alpha and beta are historical measures of past performances. ... Beta indicates how volatile a stock's price has been in comparison to the market as a whole. A high alpha is always good. A high beta may be preferred by an investor in growth stocks but shunned by investors who seek steady returns and lower risk.
Beta particles are more penetrating than alpha particles, but are less damaging to living tissue and DNA because the ionizations they produce are more widely spaced. They travel farther in air than alpha particles, but can be stopped by a layer of clothing or by a thin layer of a substance such as aluminum.
A woman who has stereotypically feminine traits, such as being gentle , nurturing , and emotional . noun.
If you were wondering “Is a high PE ratio good?”, the short answer is “no”. The higher the P/E ratio, the more you are paying for each dollar of earnings. ... The market average P/E ratio currently ranges from 20-25, so a higher PE above that could be considered bad, while a lower PE ratio could be considered better.
Research has shown that low-risk or low beta (volatility) stocks outperform high-risk stocks. According to the efficient markets hypothesis, the stock market is thought to be highly efficient.
A beta of more or less than 1 indicates that the stock should be more or less reactive than the overall market. ... For example, Johnson & Johnson has a beta of 0.7, meaning that it is less volatile than the overall market, while Amazon.com has a beta of 1.6, indicating that investors should expect higher volatility.
Beta is a statistical measure of the volatility of a stock versus the overall market. ... If a stock has a beta above 1, it's more volatile than the overall market. For example, if an asset has a beta of 1.3, it's theoretically 30% more volatile than the market.
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).]
Beta means child. Child can be boy or girl, so beta can be used to address both son and daughter and it can also be used to address niece, nephew, grandchild, or any random kid or adult much younger than you whom you can call beta with love or to pamper them.
By very definition, beta males live their lives based on the values and vision of other people. They seek validation at every turn and because they lack self-reliance and a strong sense of personal identity, they fall into patterns of neediness and approval-seeking behaviors.
The meaning of this word is 'son' but in north india and in some parts of india this word is also used for daughter, because of love and affection towards their child.
A zero-beta portfolio is a portfolio constructed to have zero systematic risk, or in other words, a beta of zero. ... Such a portfolio would have zero correlation with market movements, given that its expected return equals the risk-free rate or a relatively low rate of return compared to higher-beta portfolios.
You can determine the beta of your portfolio by multiplying the percentage of the portfolio of each individual stock by the stock's beta and then adding the sum of the stocks' betas.
A P/E of 30 is high by historical stock market standards. This type of valuation is usually placed on only the fastest-growing companies by investors in the company's early stages of growth. Once a company becomes more mature, it will grow more slowly and the P/E tends to decline.