Investors understand intuitively that some stocks are riskier than others. The capital asset pricing model attempts to quantify the common perception of risk using a term called beta. By understanding ...
Beta is the 2nd letter in the Greek alphabet, and the financial world uses it to refer to the sensitivity of an asset’s price compared to a specific index or benchmark. Beta is also used as a measure ...
Beta measures how volatile a stock is in relation to the broader stock market over time. A stock with a high beta indicates it’s more volatile than the overall market and can react with dramatic share ...
Improving one’s portfolio by knowing how Alpha and Beta relate to investment risk Also In This Package COVID-19: How to wear fabric masks safely COVID-19: What happens to unused UAE visas? COVID-19: ...
When it comes to picking stocks, everyone knows about alpha. Whether you were aware of it or not, we’re all looking for alpha, or outperformance, when trading or investing in stocks. Alpha is the ...
Investors, whether beginner or seasoned professionals, all have a threshold for risk. Some prefer to play it safe and favor a low-risk investment plan while others are more advantageous with a “high ...
Alpha and beta are two terms that get thrown around a lot in investing. They sound complicated, but they’re actually much simpler than they seem. Here’s what you need to know about alpha and beta in ...
Investors understand intuitively that some stocks are riskier than others. The capital asset pricing model attempts to quantify the common perception of risk using a term called beta. By understanding ...