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.
ଷ୍ଟେପ୍-ଷ୍ଟେପ୍ ଗାଇଡ୍ |
- 1Calculate historical returns vs. market index
- 2Compute covariance of returns
- 3Divide by market variance
ସମାଧାନ ହୋଇଥିବା ଉଦାହରଣ
ଇନପୁଟ୍
Tech stock β = 1.5
ଫଳ
50% more volatile than market
Higher risk/reward potential
ଏଡ଼ାଇବା ଯୋଗ୍ୟ ସାଧାରଣ ଭୁଲ
- ✕Assuming high β always risky (opportunity matters)
- ✕Using short lookback periods
ବାରମ୍ବାର ଜିଜ୍ଞାସା
Should beta guide investment?
No alone; consider alpha (excess return), fundamentals, diversification.
learn.ctaText
ଏହାକୁ ନିଜେ ଚେଷ୍ଟା କରନ୍ତୁ →