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Re: fuagf post# 1535

Wednesday, 09/13/2006 9:59:14 AM

Wednesday, September 13, 2006 9:59:14 AM

Post# of 140146

OT sent, thanks, again .. and to investopedia .. beta
just so the question need never be asked here again.

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

Also known as "beta coefficient".

Beta is calculated using regression analysis, and you can think of beta as 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.

Many utilities stocks have a beta of less than 1. Conversely, most hi-tech Nasdaq-based stocks have a beta greater than 1, offering the possibility of a higher rate of return but also posing more risk.


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