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

चरण-दर-चरण मार्गदर्शिका

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

हल किए गए उदाहरण

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

सामान्य गलतियां जिनसे बचना है

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

अक्सर पूछे जाने वाले प्रश्न

Should beta guide investment?

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

सेटिंग्स