A measure of an asset's risk relative to the market as a whole. If a company has a beta of 1.5, its excess return (over and above a risk-free rate) is expected to move 1.5 times the market excess return. According to one asset pricing theory, beta represents the systematic (or market) risk that cannot be diversified away by holding a large number of different shares.
Comments
0 comments
Please sign in to leave a comment.