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- Dictionarybeta/ˈbiːtə/
noun
- 1. the second letter of the Greek alphabet (Β, β), transliterated as ‘b’.
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Beta can mean the second letter of the Greek alphabet, beta software or beta version, or a shy or submissive person. Learn more about the different meanings and usage of beta with examples and collocations.
- English (US)
BETA meaning: 1. the second letter of the Greek alphabet 2....
- Znaczenie Beta, Definicja W Cambridge English Dictionary
BETA definicja: 1. the second letter of the Greek alphabet...
- Beta in Simplified Chinese
BETA translate: （希腊语字母表的第二个字母）, （软件程序）尚未投放市场，处于第二个开发阶段的,...
- Beta in Traditional Chinese
BETA translate: （希臘語字母表的第二個字母）, （軟體程式）尚未推出市場，處於第二個開發階段的,...
- Beta Male
BETA MALE definition: 1. a man who is not as successful or...
- Beta Version
BETA VERSION definition: a piece of software, etc. that is...
- Alpha
ALPHA definition: 1. the first letter of the Greek alphabet...
- Cambridge English Dictionary에서의 의미
beta 의미, 정의, beta의 정의: 1. the second letter of the Greek...
- English (US)
- What Is Beta?
- How Beta Works
- Calculating Beta
- Beta Values
- How Investors Use Beta
- Theory vs. Practice
- The Bottom Line
- GeneratedCaptionsTabForHeroSec
Beta (β) is the second letter of the Greek alphabet used in finance to denote the volatility or systematic riskof a security or portfolio compared to the market, usually the S&P 500 which has a beta of 1.0. Stocks with betas higher than 1.0 are interpreted as more volatile than the S&P 500.
A betacoefficient shows the volatility of an individual stock compared to the systematic risk of the entire market. Beta represents the slope of the line through a regression of data points. In finance, each point represents an individual stock's returns against the market. Beta effectively describes the activity of a security's returns as it respo...
A security's beta is calculated by dividing the product of the covariance of the security's returns and the market's returns by the variance of the market's returns over a specified period. The calculationhelps investors understand whether a stock moves in the same direction as the rest of the market. It also provides insights into how volatile–or ...
Beta Equal to 1:A stock with a beta of 1.0 means its price activity correlates with the market. Adding a stock to a portfolio with a beta of 1.0 doesn’t add any risk to the portfolio, but doesn’t i...Beta Less than 1:A beta value less than 1.0 means the security is less volatile than the market. Including this stock in a portfolio makes it less risky than the same portfolio without the stock. U...Beta Greater than 1:A beta greater than 1.0 indicates that the security's price is theoretically more volatile than the market. If a stock's beta is 1.2, it is assumed to be 20% more volatile than...Negative Beta: A beta of -1.0 means that the stock is inversely correlated to the market benchmark on a 1:1 basis. Put options and inverse ETFsare designed to have negative betas. There are also a...An investor uses beta to gauge how much risk a stock adds to a portfolio. While a stock that deviates very little from the market doesn’t add a lot of risk to a portfolio, it also doesn’t increase the potential for greater returns. Investors must ensure a specific stock is compared to the right benchmark and review the R-squared value to the benchm...
The beta coefficient theoryassumes that stock returns are normally distributed from a statistical perspective. In reality, returns aren’t always normally distributed. Therefore, what a stock's beta might predict about a stock’s future movement may prove untrue. A stock with a very low beta could have smaller price swings, yet still be in a long-ter...
Beta (β) is the second letter of the Greek alphabet used to measure the volatility of a security or portfolio compared to the S&P 500 which has a beta of 1.0. A Beta of 1.0 shows that a stock has been as volatile as the broader market. Betas larger than 1.0 indicate greater volatility and betas less than 1.0 indicate less volatility.
Beta (β) is a measure of how a stock or portfolio moves with the market. Learn how to calculate beta, interpret beta values, and use beta for investing decisions.
- Will Kenton
- 4 min
Beta can be a noun or an adjective, and it has different meanings in various fields. As a noun, it can refer to the second letter of the Greek alphabet, a prototype of a product, a measure of risk, or a type of wave. As an adjective, it can indicate the second position in a molecule or a variant of a substance.
Beta is the second letter of the Greek alphabet, a star, a chemical position, a computer test, and more. Learn the origin, usage, and examples of beta in different contexts.
Beta is often used to denote a variable in mathematics and physics, where it often has specific meanings for certain applications. In physics a stream of unbound energetic electrons is commonly referred to as beta radiation or beta rays .
Beta is the second letter of the Greek alaphabet. It also refers to a preliminary model of software or hardware that's not a finished project. There are two related meanings of beta: the first is the second letter of the Greek alphabet.
Beta is the second letter of the Greek alphabet, the second star in a constellation, and a measure of stock volatility. Learn more about beta in different contexts, such as chemistry, astronomy, and computers, with examples and translations.
