Beta is the 2nd letter in the Greek alphabet, and the financial world uses it to refer to the sensitivity of an asset’s price compared to a specific index or benchmark. Beta is also used as a measure ...

Nick Lioudis is a writer, multimedia professional, consultant, and content manager for Bread. He has also spent 10+ years as a journalist. Yarilet Perez is an experienced multimedia journalist and ...

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 ...

Daniel McNulty began writing for Investopedia in 2012. His work includes articles on financial analysis, asset allocation, and trading strategies. Andy Smith is a Certified Financial Planner (CFP®), ...

If you have followed my articles Dual-Beta - The Smart Investor's Most Valuable Tool or The Dual-Beta Portfolio, Part 1 - Consumer Defensive Sector, you are fully aware how powerful it can be to be ...

Beta is a quintessential part of the Capital Asset Pricing Model (“CAPM”), which is a model used to determine expected market returns. What this formula measures is the relationship between the return ...

When people use this word, they might mean "second," as opposed to "first." Or they could be referring to a particle in physics, a protein conformation in biology, or a test in computer programming.

We often hear the word beta in the context of “beta test”. It’s a way of testing something (e.g. a software program) in a real-world situation to iron out any glitches before rolling it out to the ...