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 comparing ...

When it comes to picking stocks, everyone knows about alpha. Whether you were aware of it or not, we’re all looking for alpha, or outperformance, when trading or investing in stocks. Alpha is the ...

Investing can be a lot like jumping on a trampoline. One minute you're up; the next you're down. The whole experience can be downright exhausting. Wouldn't it be great if you could anticipate just how ...

Many investors and traders consider the beta metric to be a key element to consider while evaluating a specific asset. GameStop stock (GME) is a bit of an odd bird when it comes to beta. Due to its ...

In the context of Wall Street, beta is a gauge of a stock’s movement or volatility compared to the general market – typically the S&P 500 Index. Beta measures the magnitude to which a stock fluctuates ...

Reviewed by Thomas Brock Fact checked by Suzanne Kvilhaug CAPM: An Overview Many investors use the capital asset pricing model (CAPM) as a way to estimate the potential return of a stock or other ...