Investors understand intuitively that some stocks are riskier than others. The capital asset pricing model attempts to quantify the common perception of risk using a term called beta. By understanding ...

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 ...

Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. Dr. JeFreda R. Brown is a financial consultant, ...

Improving one’s portfolio by knowing how Alpha and Beta relate to investment risk Also In This Package COVID-19: How to wear fabric masks safely COVID-19: What happens to unused UAE visas? COVID-19: ...

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 ...

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 ...