Skip to main content

learn.howToCalculate

learn.whatIsHeading

Beta measures security volatility relative to market: β > 1 more volatile than market, β < 1 less volatile, β = 1 matches market.

Guía paso a paso

  1. 1Calculate historical returns vs. market index
  2. 2Compute covariance of returns
  3. 3Divide by market variance

Ejemplos resueltos

Entrada
Tech stock β = 1.5
Resultado
50% more volatile than market
Higher risk/reward potential

Errores comunes a evitar

  • Assuming high β always risky (opportunity matters)
  • Using short lookback periods

Preguntas frecuentes

Should beta guide investment?

No alone; consider alpha (excess return), fundamentals, diversification.

Configuración

PrivacidadTérminosAcerca de© 2026 PrimeCalcPro