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DEFINITION of 'High Beta Index'

An index composed of companies with high betas trading on the NYSE.

BREAKING DOWN 'High Beta Index'

Beta is a measure of a stock's volatility in relation to the market as a whole, and the high beta index takes account of those stocks considered to have higher volatilities.

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RELATED FAQS
  1. How does beta measure a stock's market risk?

    Learn how beta is used to measure risk versus the stock market, and understand how it is calculated and used in the capital ... Read Answer >>
  2. Why should I register as a Limited Liability Company (LLC) if I am self-employed ...

    Understand the difference between a company's levered beta and unlevered beta. Learn how debt affects a company's levered ... Read Answer >>
  3. What are the differences between delta hedging and beta hedging?

    Learn about hedging strategies, how to delta and beta hedge a security and the difference between delta hedging and beta ... Read Answer >>
  4. How does my insurance company determine what premiums I have to pay for coverage?

    Learn about some of the quantitative finance measures that investors without a strong math background can use in analyzing ... Read Answer >>
  5. When is it better to use unlevered beta than levered beta?

    Understand what a security's unlevered beta and levered beta measure, and learn which one is more accurate in measuring a ... Read Answer >>
  6. What's the difference between alpha and beta?

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