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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...

   Fortunately, you won’t have to calculate the beta for each stock you’re looking at. The beta for any stock can be found on most popular financial websites or through your online broker ...

5. 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 ...

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. Tracking error - Wikipedia

   en.wikipedia.org/wiki/Tracking_error

   The best measure is the standard deviation of the difference between the portfolio and index returns. Many portfolios are managed to a benchmark, typically an index. Some portfolios, notably index funds , are expected to replicate, before trading and other costs, the returns of an index exactly, while others ' actively manage ' the portfolio by ...

8. 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 ...

9. 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 ...