Cryptocurrency Q&A
What is beta in investment?
What is beta in investment?
Martino
Wed Mar 12 2025
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6
answers
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I'm trying to understand the concept of beta in the context of investments. Could someone explain what beta represents and how it's used to evaluate investments?
6 answers
KDramaLegend
Fri Mar 14 2025
It measures the volatility of returns of a particular investment security, such as a stock, in relation to the market as a whole.
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Andrea
Fri Mar 14 2025
Beta is a fundamental component of the Capital Asset Pricing Model (CAPM), which helps determine the required return on an investment based on its risk.
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benjamin_doe_philosopher
Fri Mar 14 2025
This measurement is crucial in understanding the risk associated with an investment.
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Carolina
Fri Mar 14 2025
Beta is calculated by comparing the movement of an individual stock's returns to the returns of the broader market.
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Davide
Fri Mar 14 2025
A beta value greater than one indicates that the investment is more volatile than the market, while a beta value less than one suggests it is less volatile.
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