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Beta
A measure of the systematic risk level of a security (or security portfolio) obtained by quantifying the relationship between the security's returns and market returns, or between the volatility of the security and market volatility.
A beta coefficient of 1 means that the market and a given security (or security portfolio) carry the same volatility. A beta coefficient greater than 1 implies that the security is more volatile than the market, and thus the risk is higher, while a beta lower than 1 means that the security is less volatile than the market.
Translations
Synonyms and variations
- Beta coefficient