Beta Value

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Definition: Beta Value

Beta Value
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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.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

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https://payrollheaven.com/define/beta-value/
Modern Language Association (MLA):
Beta Value. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
November 08, 2024 https://payrollheaven.com/define/beta-value/.
Chicago Manual of Style (CMS):
Beta Value. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/beta-value/ (accessed: November 08, 2024).
American Psychological Association (APA):
Beta Value. PayrollHeaven.com. Retrieved November 08, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/beta-value/

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 | 0 Views.