Beta

Posted in Finance, Accounting and Economics Terms, Total Reads: 1153
Advertisements

Definition: Beta

Beta is a measured used in portfolio management which is a risk factor for a single asset or a portfolio of assets. It represents the systematic risk i.e. the non-diversifiable risk of an asset/portfolio.

It is generally measured as the correlation between the returns on an asset with the returns of the market portfolio which is generally the returns on a representative index such as the S&P 500.

Mathematically, beta is expressed as:

beta


Browse the definition and meaning of more terms similar to Beta. The Management Dictionary covers over 7000 business concepts from 6 categories.

Search & Explore : Management Dictionary



Share this Page on: