Beta Value

Business, Legal & Accounting Glossary

Definition: Beta Value



Full Definition of Beta Value


A measurement of the movement of the price of a particular stock compared with the movement of the market as a whole during the same period.

  • if a stock has a beta value of under 1, it is regarded as low-risk
  • if a stock has a beta value of over 1, it is regarded as riskier but there is a greater chance that it will outperform the market

Betas are usually plotted on a scatter diagram which shows the movement of the market as a whole and the return on a particular stock daily, weekly, monthly or quarterly.

Note that betas for any individual company do change, so you can’t rely on historical betas as a guide to future betas.


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Definition Sources


Definitions for Beta Value are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 1 Views.