beta stocks

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • Beta (finance) — The beta coefficient, in terms of finance and investing, describes how the expected return of a stock or portfolio is correlated to the return of the financial market as a whole. [cite book last = Levinson first = Mark year = 2006 title = Guide… …   Wikipedia

  • beta — A measure correlating stock price movement to the movement of an index. Beta is used to determine the number of contracts required to hedge with stock index futures or futures options. The CENTER ONLINE Futures Glossary A Greek letter used by… …   Financial and business terms

  • beta shares — / bi:tə ʃeəz/, beta securities / bi:tə sɪˌkjυərɪtiz/, beta stocks / bi:tə stɒks/ plural noun a group of about 500 shares which are traded on the London Stock Exchange, but not as frequently as the alpha shares (NOTE: Prices of beta shares are… …   Dictionary of banking and finance

  • beta — [bāt′ə; ] chiefly Brit [ bēt′ə] n. [L < Gr bēta < Heb bet, lit., house; prob. of Phoen orig.] 1. the second letter of the Greek alphabet (Β, β) 2. the second of a group or series 3. [B ] Astron. the name assigned to the second brightest… …   English World dictionary

  • Beta — A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its… …   Investment dictionary

  • Beta (Mutual Funds) — The measure of a fund s or stocks risk in relation to the market. A beta of 0.7 means the fund s total return is likely to move up or down 70% of the market change; 1.3 means total return is likely to move up or down 30% more than the market.… …   Financial and business terms

  • Beta equation (Stocks) — The beta of a stock is determined as follows: (( n) (sum of (xy)) ) ((sum of x) (sum of y)) (( n) (sum of (xx)) ) ((sum of x) (sum of x)) where: n = number of observations (24 60 months) x = rate of return for the S&P 500 Index y = rate of return …   Financial and business terms

  • beta factor —  Stock market measure of price variability.  A statistical measure of the relative risk of a common stock compared with the market for all stocks.  ► “The conventional wisdom has been that portfolio betas are more stable than those for individual …   American business jargon

  • beta coefficient —  Stock market measure of price variability.  A statistical measure of the relative risk of a common stock compared with the market for all stocks.  ► “The conventional wisdom has been that portfolio betas are more stable than those for individual …   American business jargon

  • Cyclical Stocks —    Stocks that are affected by economic cycles, such as property and consumer durables. Cyclical stocks are generally viewed to be riskier investments and carry a higher beta than non cyclical stock.    ► See also Beta, Counter cyclical Stock …   Financial and business terms

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