Financial Terms | |
Beta coefficient |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: investment, inventory, financial advisor, finance, payroll, credit, accounting, inventory control, |
Definition of Beta coefficientBeta coefficientA measurement of the extent to which the returns on a given stock move with stock market.
Related Terms:Market RiskThe part of security's risk that cannot be eliminated by diversification. It is measured by the beta coefficient. Security market lineLine representing the relationship between expected return and market risk. Security Market LineA graph illustrating the equilibrium relationship between the BetaA measure of the riskiness of a specific security compared to the BetaThe price volatility of a financial instrument relative to the price betaSensitivity of a stock’s return to the return on the market Beta equation (Mutual Funds)The beta of a fund is determined as follows: Beta equation (Stocks)The beta of a stock is determined as follows: Beta (Mutual Funds)The measure of a fund's or stocks risk in relation to the market. A beta of 0.7 means Beta riskRisk of a firm measured from the standpoint of an investor who holds a highly diversified portfolio. coefficient of correlationa measure of dispersion that indicates the degree of relative association existing between two variables Coefficient of determinationA measure of the goodness of fit of the relationship between the dependent and coefficient of determinationa measure of dispersion that coefficient of variationa measure of risk used when the standard deviations for multiple projects are approximately Correlation coefficientA standardized statistical measure of the dependence of two random variables, Correlation CoefficientA measure of the tendency of two variables to change values Correlation coefficientA statistic in which the covariance is scaled to a Country betaCovariance of a national economy's rate of return and the rate of return the world economy Expected return-beta relationshipImplication of the CAPM that security risk premiums will be Foreign market betaA measure of foreign market risk that is derived from the capital asset pricing model. Fundamental betaThe product of a statistical model to predict the fundamental risk of a security using not Information Coefficient (IC)The correlation between predicted and actual stock returns, sometimes used to input-output coefficienta number (prefaced as a multiplier Leveraged betaThe beta of a leveraged required return; that is, the beta as adjusted for the degree of Unleveraged betaThe beta of an unleveraged required return (i.e. no debt) on an investment when the Zero-beta portfolioA portfolio constructed to represent the risk-free asset, that is, having a beta of zero.
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |