What is beta in the stock market?

Beta is a measure of a stock’s or portfolio’s volatility in relation to the overall market. It indicates how much an asset’s price moves compared to the market’s movement.

How is beta calculated?

Beta is calculated by comparing the returns of an asset to the returns of a benchmark, such as the S&P 500. It is calculated using the covariance between the asset’s returns and the market’s returns, divided by the variance of the market’s returns.

How does beta affect my investment?

A higher beta indicates that the asset is more volatile and sensitive to market movements, while a lower beta indicates less volatility. Investors can use beta to gauge the risk of individual assets or portfolios and adjust their exposure to market volatility accordingly.

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What is BETA (STOCK MARKET)?

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Bid Price is the highest price a buyer is willing to pay for a security.

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