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  2. What Beta Means: Understanding a Stock’s Risk - AOL

    www.aol.com/finance/beta-means-understanding...

    What Is a Good Beta for a Stock? There is no such thing as an empirically “good” or “bad” beta for a stock. The type of beta you want for your portfolio depends on the type of investor you ...

  3. How to use beta to evaluate a stock’s risk - AOL

    www.aol.com/finance/beta-evaluate-stock-risk...

    Beta allows for a good comparison between an individual stock and a market-tracking index fund, but it doesn’t offer a complete portrait of a stock’s risk. Instead, it’s a look at its level ...

  4. Beta (finance) - Wikipedia

    en.wikipedia.org/wiki/Beta_(finance)

    In finance, the beta (β or market beta or beta coefficient) is a statistic that measures the expected increase or decrease of an individual stock price in proportion to movements of the stock market as a whole. Beta can be used to indicate the contribution of an individual asset to the market risk of a portfolio when it is added in small ...

  5. Alpha vs. beta in investing: What’s the difference? - AOL

    www.aol.com/finance/alpha-vs-beta-investing...

    The beta for any stock can be found on most popular financial websites or through your online broker. Examples of beta Here are three popular securities and their betas as of April 16, 2024.

  6. Modern portfolio theory - Wikipedia

    en.wikipedia.org/wiki/Modern_portfolio_theory

    β, Beta, is the measure of asset sensitivity to a movement in the overall market; Beta is usually found via regression on historical data. Betas exceeding one signify more than average "riskiness" in the sense of the asset's contribution to overall portfolio risk; betas below one indicate a lower than average risk contribution.

  7. Alpha (finance) - Wikipedia

    en.wikipedia.org/wiki/Alpha_(finance)

    Alpha is a measure of the active return on an investment, the performance of that investment compared with a suitable market index.An alpha of 1% means the investment's return on investment over a selected period of time was 1% better than the market during that same period; a negative alpha means the investment underperformed the market.

  8. Portfolio Beta vs. Stock Beta: What's the Difference?

    www.aol.com/finance/calculate-beta-portfolio...

    Investors, whether beginner or seasoned professionals, all have a threshold for risk. Some prefer to play it safe and favor a low-risk investment plan while others are more advantageous with a ...

  9. Security characteristic line - Wikipedia

    en.wikipedia.org/wiki/Security_characteristic_line

    Security characteristic line (SCL) is a regression line, [1] plotting performance of a particular security or portfolio against that of the market portfolio at every point in time. The SCL is plotted on a graph where the Y-axis is the excess return on a security over the risk-free return and the X-axis is the excess return of the market in general.

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