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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. What Is Beta? Everything You Need to Know About ... - AOL

   www.aol.com/news/beta-everything-know-measuring...

   Beta measures how volatile a stock is in relation to the broader stock market over time. A stock with a high beta indicates it's more volatile than the overall market and can react with dramatic ...

4. 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 ...

5. 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.

6. 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 ...

7. Hamada's equation - Wikipedia

   en.wikipedia.org/wiki/Hamada's_equation

   The importance of Hamada's equation is that it separates the risk of the business, reflected here by the beta of an unlevered firm, β U, from that of its levered counterpart, β L, which contains the financial risk of leverage. Apart from the effect of the tax rate, which is generally taken as constant, the discrepancy between the two betas ...

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

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

   For example, if the market is making a big move 20% higher, a stock with a beta of 1.5 will tend to trade up 30%. In this way, an investor can maximize gains in a bullish market by picking up ...

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 ...