answersLogoWhite

0

What does BETA indicate?

Updated: 11/8/2022
User Avatar

Wiki User

14y ago

Best Answer

Beta is a measure of a stock's volatility. The price of a stock with a beta of 1.0 rises and falls on average with the overall market. A beta greater than 1.0 could mean larger prices fluctuations, and a beta of less than 1.0 indicates a more tame stock.

For example, if Company A has a beta of 1.2 and the market goes up 10% in a given period of time then Company A should increase about 12% in value. If the market falls 20% then Company A's stock price should drop 24%.

User Avatar

Wiki User

14y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What does BETA indicate?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

If portfolio a has a beta of 1.5 and portfolio z has a beta of -1.5 what do the two values indicate?

Simple scenario: Taking into account beta of index is set at 1.0; Lets say market increases by 5% Beta of 1.5 would indicate that the particular portfolio would increase by 7.5% as for beta of -1.5, the portfolio would decrease by 7.5% Beta is a measure of sensitivity of market base on the reference index. Negative beta would mean that the portfolio is inversely proportional to market performance.


Zeta Phi Beta?

what does this mean zeta phi beta in African Language & American Language?


When was Beta Beta Beta created?

Beta Beta Beta was created in 1922.


What does a driver being in beta release indicate about that driver?

A beta release is like a trial run. The article being tested is feature complete, but will likely have errors and usability issues. The consumers chosen as beta testers report any problems and opinions back to the company. The company then uses that information to better the product before its final release.


What is the motto of Beta Beta Beta?

Beta Beta Beta's motto is 'Blepein Basin Biou'.


If you detect a predominance of beta waves in a subject undergoing a sleep experiment the subject is most likely?

Not experiencing normal deep sleep as beta waves are associated with wakefulness and alertness. This could indicate that the subject is not in a deep sleep stage but instead in a light sleep or possibly even awake.


What are three types of beta decay?

There are two types of beta decay, and they are beta plus (beta +) decay and beta minus (beta -) decay. A post already exists on beta decay, and a link to that related question can be found below.


What is beta basketball worth?

A beta rocking horse or beta books


What place of a clique is a beta?

beta- second in command beta- second in command


How many protons will uranium have after releasing a beta particle?

It depends on whether the beta decay sequence is beta- or beta+. In beta-, the atom will gain a proton, changing into neptunium. In beta+, the atom will lose a proton, changing into protactinium.


What is a closed beta and a open beta?

A beta software release is a version of an application which is incomplete, and is supposed to perform as would the final version, but without any guarantee of sustained or intended functionality. Its release is intended to reveal the extent to which its functionality cannot be sustained or relied upon, and is used to indicate how best to finalise it.An open beta version is one released to the general public, intended to provide the functionality, whilst also using arising errors to fix existing issues in the application.A close beta version is one released to a select group for the same purpose, and is often preferred for commercial packages, so that a free beta does not become publically available, allowing customers to evade the purchase of the product.


In the context of the Capital Asset Pricing Model how would you define beta How are beta determined and where can they be obtained What are the limitations of beta?

In the context of the Capital Asset Pricing Model how would you define beta? How are beta determined and where can they be obtained? What are the limitations of beta?