Sentences with phrase «beta coefficient»
The "beta coefficient" is a term commonly used in finance. It measures how much the price of a specific investment moves in relation to the overall market. A beta coefficient of 1 means the investment tends to move in sync with the market, while a beta greater than 1 suggests it is more volatile than the market. On the other hand, a beta coefficient less than 1 means it is less volatile than the market. It helps investors understand the investment's risk and potential returns compared to the broader market. Full definition
A negative beta coefficient means the asset's price moves in the opposite direction to the market.
retailinvestor.org
Beta Coefficient of a mutual fund / stock / portfolio is a measure of the risk that shows up when the mutual fund / stock / portfolio is exposed to different types of market conditions like an up market, down market, recession, etc..
First, the amount of explained variance in this study was small to moderate, with standardized beta coefficients for significant parenting effects ranging in size from.13 to.24.
The required rate of return for an individual asset can be calculated by multiplying the asset's beta coefficient by the market coefficient, then adding back the risk - free rate.
Re = Rf + β * ERP where Re = expected return on equity Rf = risk - free rate β = beta coefficient, by definition equal to 1 for the equity market
As an example, calculations of beta coefficients often vary significantly when the periodicity of the data changes.
Now, if the concept of yield spreads is valid, when I do regressions of treasury yields on corporate index yields, I should see tight correlations of the yields versus Treasuries, and beta coefficients near one.
For assessing, Beta Coefficient presents the portion of each variables in a size model.
Beta Coefficient of a mutual fund / stock / portfolio is a measure of the risk that shows up when the mutual fund / stock / portfolio is exposed to different types of market conditions like an up market, down market, recession, etc..
The amount of value added needs to be greater than the corporations investors could have achieved investing in the market portfolio, adjusted for the leverage, beta coefficient, of the firm relative to the market.
The most accurate metric for measuring a sector's risk against that of the broader market is the beta coefficient.
If you had asked me last year, I would have said that «beta coefficient» looks like a very geeky mathematical name i.e. something I had ignored often as too complicated.
A metric used by many investors to compare a mutual fund / stock / portfolio to the entire market is called the Beta Coefficient.
I gave the search «VCADX beta coefficient» on google and google finance displays the beta coefficient for VCADX so easily that I repeated the same procedure for the remaining mutual funds in my portfolio and here are two tables.
The beta coefficient of a stock or stock portfolio is the measure of volatility of a -LSB-...]
You can start by doing a little bit of research on the beta coefficient of investments that you are considering.
The beta coefficient is a measure of a stock's volatility, or risk, versus that of the market; the market's volatility is conventionally set to 1, so if a = m, then βa = βm = 1.
Just like alpha, the values of beta or «beta coefficient» also tell us a «market - compared» result.
The sensitivity you are talking about would be more like a beta coefficient.
The stock with a beta coefficient larger than one (or negative one) is riskier because its price swings wider than the asset class does.
The measure of how closely a individual stock's returns tracks that of the equities class is called the «beta coefficient».
Beta is also known as the beta coefficient.
Although the fund's beta coefficient was lower than one, it produced a negative alpha intercept.
For example, if you are interested in a stock that has a beta coefficient of 2 (which is double the benchmark index of 1) then the stock is likely to move twice as much as the benchmark index.
The beta coefficient of a stock or stock portfolio is the measure of volatility of a stock or stock portfolio's return versus that of the rest of the market.
Although the beta coefficient is a excellent metric to reference, you should always look at a variety of metrics when determining whether or not a stock or portfolio fits your investment objectives.
Therefore, a higher beta coefficient means that a stock or portfolio is more volatile and a lower beta coefficient means that a stock is less volatile.
Beta, is also known as the beta coefficient, is used in the capital asset pricing model (CAPM), which calculates the expected return of an asset based on its beta and expected market returns.
The beta coefficient can be a quick and easy way for an investor to gauge the risk of a stock or stock portfolio.
The most accurate metric for measuring a sector's risk against that of the broader market is the beta coefficient.
I take some heart that the beta coefficients are very similar, and the residuals are as well.
A metric used by many investors to compare a mutual fund / stock / portfolio to the entire market is called the Beta Coefficient.
If you had asked me last year, I would have said that «beta coefficient» looks like a very geeky mathematical name i.e. something I had ignored often as too complicated.
I gave the search «VCADX beta coefficient» on google and google finance displays the beta coefficient for VCADX so easily that I repeated the same procedure for the remaining mutual funds in my portfolio and here are two tables.
To calculate a beta coefficient for bitcoin, a number of inputs and assumptions are required - such as a risk - free rate of return.
For securities like stock, volatility is often expressed by its beta coefficient (or «beta»).
Standardized beta coefficients are reported.
Therefore, we also report the beta coefficients for the single predictors.