Learn how to calculate beta in stocks and portfolios with comprehensive definitions and examples for informed trading decisions.

Portfolio beta is the measure of an entire portfolio’s sensitivity to market changes while stock beta is just a snapshot of an individual stock’s volatility.

Beta measures a stock’s volatility compared to the overall market. A beta above 1 means the stock is more volatile, while a beta below 1 means it is less volatile. Calculating beta involves ...

Beta, a measure of a stock's volatility relative to the overall market, is one of the most popular indicators of risk. Here's how to read it.

A beta less than 1 indicates that the firm's stock price is less volatile than the market. Microsoft Excel serves as a tool to organize data and calculate beta.

The cost of equity formula is a financial metric that represents the return investors expect for holding a company's stock. This formula can help you evaluate whether a company's stock is ...

What Is Beta? For example, a stock’s risk is measured against a benchmark stock index, such as the S&P 500 Index in U.S. trading. It’s useful in determining a ...

What is beta? In a nutshell, beta is a measure of how reactive a stock is to overall market movements – particularly those of the S&P 500 benchmark index.

'Alpha’ tells investors how a security has historically performed vs. a benchmark while ‘beta’ shows volatility over time vs. the market. Learn more about their differences and uses.

Both manually and using the Microsoft Excel program. Portfolio beta formula The formula for portfolio beta takes the beta of each individual stock, asset or holding and averages the weights together.

Beta refers to a stock’s volatility in relation to the market, which may sound similar to alpha, but the two are actually quite different. Read more to learn what beta means when considering a ...