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

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

   To calculate beta, investors divide the covariance of an individual stock (say, Apple) with the overall market, often represented by the Standard & Poor’s 500 Index, by the variance of the ...

3. Beta (finance) - Wikipedia

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

   The true market-beta is essentially the average outcome if infinitely many draws could be observed. On average, the best forecast of the realized market-beta is also the best forecast of the true market-beta. Estimators of market-beta have to wrestle with two important problems. First, the underlying market betas are known to move over time.

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

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

   How to calculate beta Beta is calculated by taking the covariance between the return of an asset and the return of the market and dividing it by the variance of the market.

5. Single-index model - Wikipedia

   en.wikipedia.org/wiki/Single-index_model

   The term () represents the movement of the market modified by the stock's beta, while represents the unsystematic risk of the security due to firm-specific factors. Macroeconomic events, such as changes in interest rates or the cost of labor, causes the systematic risk that affects the returns of all stocks, and the firm-specific events are the ...

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

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

   For example, if a stock tends to show varying returns that are 50% greater than the movements of the overall market, that stock will have a beta of 1.5. The overall market has a beta of 1.0, as it ...

7. Jensen's alpha - Wikipedia

   en.wikipedia.org/wiki/Jensen's_alpha

   It is a version of the standard alpha based on a theoretical performance instead of a market index. The security could be any asset, such as stocks, bonds, or derivatives. The theoretical return is predicted by a market model, most commonly the capital asset pricing model (CAPM). The market model uses statistical methods to predict the ...

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

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

   Continue reading → The post How to Calculate the Beta of a Portfolio appeared first on SmartAsset Blog. Investors, whether beginner or seasoned professionals, all have a threshold for risk. Some ...

9. Dual-beta - Wikipedia

   en.wikipedia.org/wiki/Dual-beta

   The Capital Asset Pricing Model posits that individual stock returns move with the overall stock market symmetrically, i.e., that their upside and downside betas are identical. The dual-beta model attempts to differentiate downside risk (risk of loss) from upside risk (gain), both measured in terms of beta with respect to the market and not ...