Every investor strives to balance two conflicting goals: Maximizing their investment returns and minimizing their risk. Beta offers a way to measure the amount of risk you’re taking on for a given ...
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 ...
The most common metric used to quantify a stock’s market risk is Beta—a measure of a security’s volatility compared to the overall market (usually the S&P 500). However, the Beta you typically see ...