Next video:
Loading the player...

Beta is a measure of volatility. Find out what this means and how it affects your portfolio.

Related Articles
  1. Investing

    Beta: Gauging Price Fluctuations

    Learn how to properly use this measure that can help you meet your criteria for risk.
  2. Investing

    Beta: Know the Risk

    Beta says something about measuring price risk in stocks, but how much does it say about fundamental risk factors too?
  3. Investing

    3 Cases When Beta Does Not Measure Volatility of Stocks

    Examine the theoretical and statistical relationship between beta and volatility to identify three factors that limit beta's explanatory value.
  4. Financial Advisor

    Calculating Beta: Portfolio Math For The Average Investor

    Beta is a useful tool for calculating risk, but the formulas provided online aren't specific to you. Learn how to make your own.
  5. Investing

    Smart Beta: Can Low Beta Equal High Risk?

    Low beta may not necessarily mean low risk when it comes to some smart beta strategies.
  6. Investing

    5 High-Beta Stocks To Watch

    Check out five high-beta stocks that can help make your portfolio more exciting.
  7. Investing

    5 Low-Beta DJIA Stocks To Know

    Check out five low-beta stocks that can help you to diversify your portfolio.
  8. Investing

    How To Reduce Volatility In Your Portfolio

    It's imperative that traders have a plan for when the market becomes tough to navigate. Here are some tips.
  9. Financial Advisor

    How to Explain Smart Beta Strategies to Clients

    Smart beta funds continue to gain steam. Here's how to explain the benefits of these strategies to clients.
Hot Definitions
  1. Gross Domestic Product - GDP

    GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period, ...
  2. Debt/Equity Ratio

    The D/E ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders’ equity.
  3. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange.
  4. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  5. Return On Equity - ROE

    The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability ...
  6. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
Trading Center