Beta (finance)/Definition: Difference between revisions
Jump to navigation
Jump to search
imported>David E. Volk m (Beta/Definition moved to Beta (finance)/Definition: disambiguation) |
imported>Nick Gardner No edit summary |
||
| Line 1: | Line 1: | ||
<noinclude>{{Subpages}}</noinclude> | <noinclude>{{Subpages}}</noinclude> | ||
A measure of the degree to which the rate of return of a share tracks that of the equity market as a whole (defined as the | A measure of the degree to which the rate of return of a share tracks that of the equity market as a whole (defined as the [[covariance]] between the share's rate of return and the average market rate, divided by the [[variance]] of the market rate). If beta = 1 the share's rate of return moves in line with the market rate; if it is negative, it falls when the market rate rises. | ||
Latest revision as of 05:45, 22 February 2010
This article contains just a definition and optionally other subpages (such as a list of related articles), but no metadata. Create the metadata page if you want to expand this into a full article.
Beta (finance) [r]: A measure of the degree to which the rate of return of a share tracks that of the equity market as a whole (defined as the covariance between the share's rate of return and the average market rate, divided by the variance of the market rate). If beta = 1 the share's rate of return moves in line with the market rate; if it is negative, it falls when the market rate rises.