Beta

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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 ?
Some people will need to take a lactase enzyme supplement to manage symptoms of LI (NIDDK, 2014).
Carriers of allele genotype C/C-13910 are characterized by a decrease in the level of lactase in adulthood.
Unfortunately, Filipinos do not possess the chromosomal mutation nor the milk consuming culture that will enable them to continuously produce lactase.
Studies in infants recovering from enteritis have shown that ingestion of cow's milk protein can cause a marked reduction in lactase, sucrase, and maltase activity (isomaltase activity was not measured), accompanied by histologic changes in jejunal mucosa.
Arylsulfatase is an impurity found in lactase that converts components naturally present in milk to cause off-Flavour in lactose-free dairy products, resulting in a limited shelf life.
To mitigate this problem, researchers in Europe have developed an advanced lactase enzyme formulation that targets the underlying cause of the problem--and helps restore the ability to digest lactose
Among the topics are inferring processes of Neolithic gene-culture co-evolution using genetic and archaeological data: the case of lactase persistence and dairying, evaluating the appearance and spread of domestic caprines in the southern Levant, early stock-keeping in Greece, the origin of stock-keeping and spread of animal exploitation strategies in the Early and Middle Neolithic of the North European Plain, and zoological data from Late Mesolithic and Neolithic sites in Switzerland about 6000-3500 BC, and earlier Neolithic subsistence in Britain and Ireland as seen through faunal remains and stable isotopes.
A Your body needs the enzyme lactase to break down lactose, a sugar in milk products, before it is absorbed into the bloodstream.
Lactose, the principle sugar in milk is a disaccharide, hydrolyzed by intestinal lactase (EC3.
Baby mammals have an enzyme called lactase which allows them to digest their mother's milk, but as they grow and are weaned onto solid food, the ability to produce lactase disappears.
The enzyme lactase, responsible for breaking down the dairy sugar lactose, is present on a smaller level in the human body.
Especially compelling is a segment on lactase persistence, in which Dr.