Meaning of BETA in English


The measure of a fund's or stocks risk in relation to the market , or an alternative benchmark . A beta of 1.5 means that a stock's excess return is expected to move 1.5 times the market excess returns. E.g. if market excess return is 10% then we expect, on average, the stock return to be 15%. Beta is referred to as an index of the systematic risk due to general market conditions that cannot be diversified away.

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.