Beta measures a stock’s volatility compared to the overall market. A beta above 1 means the stock is more volatile, while a beta below 1 means it is less volatile. Calculating beta involves comparing ...

Investors, whether beginner or seasoned professionals, all have a threshold for risk. Some prefer to play it safe and favor a low-risk investment plan while others are more advantageous with a “high ...

When it comes to picking stocks, everyone knows about alpha. Whether you were aware of it or not, we’re all looking for alpha, or outperformance, when trading or investing in stocks. Alpha is the ...

Every investor strives to balance two conflicting goals: Maximizing their investment returns and minimizing their risk. Beta offers a way to measure the amount of risk you’re taking on for a given ...

We often hear the word beta in the context of “beta test”. It’s a way of testing something (e.g. a software program) in a real-world situation to iron out any glitches before rolling it out to the ...

Alpha and beta are two terms that get thrown around a lot in investing. They sound complicated, but they’re actually much simpler than they seem. Here’s what you need to know about alpha and beta in ...