| 1. | the second letter of the Greek alphabet (β, B). |
| 2. | the consonant sound represented by this letter. |
| 3. | (initial capital letter ) Astronomy. a star that is usually the second brightest of a constellation: The second brightest star in Taurus is Beta Tauri. |
| 4. | Chemistry.
|
| 5. | the second of any series, as in chemistry or physics. |
| 6. | Also called beta coefficient, beta line. Stock Exchange. an arbitrary measure of the volatility of a given stock using an index of the volatility of the market as a whole: A beta of 1.1 indicates a stock that is 10 percent more volatile than the market. |
| 7. | (initial capital letter ) Trademark. a brand of tape format for VCR tape, incompatible with other formats. Compare VHS. |
| 8. | Chiefly British. a grade showing that a student is in the middle or second of three scholastic sections in a class. Compare alpha (def. 7), gamma (def. 9). |
be·ta (bā'tə, bē'-) n.
[Greek bēta, of Phoenician origin; see byt in Semitic roots.] |
Beta
A measure of a security's or portfolio's volatility, or systematic risk, in comparison to the market as a whole. Also known as "beta coefficient."
Investopedia Commentary
Beta is calculated using regression analysis, and you can think of beta as the tendency of a security's returns to respond to swings in the market. A beta of 1 indicates that the security's price will move with the market. A beta less than 1 means that the security will be less volatile than the market. A beta greater than 1 indicates that the security's price will be more volatile than the market. For example, if a stock's beta is 1.2 it's theoretically 20% more volatile than the market.
Many utilities stocks have a beta of less than 1. Conversely most high-tech Nasdaq-based stocks have a beta greater than 1, offering the possibility of a higher rate of return but also posing more risk.
Related Links
Beta: Know the Risk
Beta: Gauging Price Fluctuations
Understanding Volatility Measurements
Getting To Know The "Greeks"
See also: CAPM, CML, Systematic Risk, Volatility, Weighted Average Cost of Capital - WACC
beta
beta be·ta (bā'tə, bē'-)
n.
Symbol β The second letter of the Greek alphabet.
The second item in a series or system of classification.
A beta particle.
A beta ray.
Of or relating to the second position from a designated carbon atom in an organic molecule at which an atom or a radical may be substituted.
Of or relating to an isomeric variation of a chemical compound, such as a stereoisomer.
BETA
Kristensen, Madsen
Mjolner Informatics ApS, Aarhus, implementations for Mac, Sun, HP, Apollo.
E-mail:
Mailing list:
["Object-Oriented Programming in the BETA Programming Language", Ole Lehrmann et al, A-W June 1993, ISBN 0-201-62430-3].
[The Jargon File]
(1995-10-31)
beta
/bay't*/, /be't*/ or (Commonwealth) /bee't*/
See beta conversion, beta test.
[The Jargon File]