Beta

(redirected from beta particle)
Also found in: Dictionary, Thesaurus, Medical, Encyclopedia, Wikipedia.
Related to beta particle: Gamma particle

Beta

The measure of an asset's risk in relation to the market (for example, the S&P500) or to an alternative benchmark or factors. Roughly speaking, a security with a beta of 1.5, will have move, on average, 1.5 times the market return. [More precisely, that stock's excess return (over and above a short-term money market rate) is expected to move 1.5 times the market excess return).] According to asset pricing theory, beta represents the type of risk, systematic risk, that cannot be diversified away. When using beta, there are a number of issues that you need to be aware of: (1) betas may change through time; (2) betas may be different depending on the direction of the market (i.e. betas may be greater for down moves in the market rather than up moves); (3) the estimated beta will be biased if the security does not frequently trade; (4) the beta is not necessarily a complete measure of risk (you may need multiple betas). Also, note that the beta is a measure of co-movement, not volatility. It is possible for a security to have a zero beta and higher volatility than the market.

Beta

A measure of a security's or portfolio's volatility. A beta of 1 means that the security or portfolio is neither more nor less volatile or risky than the wider market. A beta of more than 1 indicates greater volatility and a beta of less than 1 indicates less. Beta is an important component of the Capital Asset Pricing Model, which attempts to use volatility and risk to estimate expected returns.

beta

A mathematical measure of the sensitivity of rates of return on a portfolio or a given stock compared with rates of return on the market as a whole. A high beta (greater than 1.0) indicates moderate or high price volatility. A beta of 1.5 forecasts a 1.5% change in the return on an asset for every 1% change in the return on the market. High-beta stocks are best to own in a strong bull market but are worst to own in a bear market. See also alpha, capital-asset pricing model, characteristic line, portfolio beta.

Beta.

Beta is a measure of an investment's relative volatility. The higher the beta, the more sharply the value of the investment can be expected to fluctuate in relation to a market index.

For example, Standard & Poor's 500 Index (S&P 500) has a beta coefficient (or base) of 1. That means if the S&P 500 moves 2% in either direction, a stock with a beta of 1 would also move 2%.

Under the same market conditions, however, a stock with a beta of 1.5 would move 3% (2% increase x 1.5 beta = 0.03, or 3%). But a stock with a beta lower than 1 would be expected to be more stable in price and move less. Betas as low as 0.5 and as high as 4 are fairly common, depending on the sector and size of the company.

However, in recent years, there has been a lively debate about the validity of assigning and using a beta value as an accurate predictor of stock performance.

References in periodicals archive ?
In this work, the thermoluminescence properties of beta particle irradiated self-agglomerating CaS[O.sub.4]:Eu are reported.
chemically similar to calcium and emits beta particles, accumulates in
As it does so, it releases high-energy electrons, which are also known as beta particles. A semiconductor is then used to capture these electrons, and convert them into low and constant levels of electricity that can then be used to power up a number of devices, depending on needs.
As the isotope decays, it emits beta particles (electrons).
Storage phosphor screens are composed of fine crystal material like BaFbr:[Eu.sup.+2] in an organic binder and retain energy from high-energy radiation (e.g., x-rays, UV light, gamma rays or beta particles).
DU is a heavy metal that is also slightly radioactive, emitting alpha and beta particles and gamma rays.
And it is this transformation, in which subatomic particles called alpha and beta particles or electromagnetic rays like x-rays and gamma rays are emitted, that we know as radioactivity.
When they decay, they give off radiation: high-energy particles (called alpha and beta particles) and waves of energy (called gamma rays).
While a new |stand-off' (contactless) probe has been under development for some time, the Beta backscatter utilises a source of beta particles (electrons) to bombard the coated aluminium.
Dentinger and Crowell have developed a system for storing and generating hydrogen in a fuel cell using beta particles from 63Ni to degrade linear polyethylene to release substantially pure hydrogen.
particles; cesium-137 emits beta particles and gamma rays, virtually all
Examples include ultraviolet, X-rays, and gamma rays from the electromagnetic spectrum and subatomic particles such as alpha particles, beta particles, and neutrons.