Beta is a measure of a security’s risk in relation to the market. Beta is calculated by taking the covariance of the security’s returns and the market’s returns, divided by the variance of the market’s returns. A beta of 1 indicates that the security’s returns move exactly with the market. A beta of less than […]
What Are High Beta Stocks
What are high beta stocks? High beta stocks are stocks that have a higher volatility than the market as a whole. This means that they are more likely to experience larger price swings than the market as a whole. High beta stocks are often sought after by investors who are looking for more excitement in […]
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