Every investor strives to balance two conflicting goals: Maximizing their investment returns and minimizing their risk. Beta offers a way to measure the amount of risk you’re taking on for a given ...
Investors understand intuitively that some stocks are riskier than others. The capital asset pricing model attempts to quantify the common perception of risk using a term called beta. By understanding ...
A stock’s beta is a measure of how volatile that stock is compared with the market. Here’s how to calculate it, how to use it and what it’s good for. Many, or all, of the products featured on this ...