Home > Terms > English, UK (UE) > Beta

Beta

Part of an economic theory for valuing financial securities and calculating the cost of capital, known as the capital asset pricing model, beta measures the sensitivity of the price of a particular asset to changes in the market as a whole. If a company's shares have a beta of 0. 8 it implies that on average the share price will change by 0. 8% if there is a 1% change in the market. There is a long-running debate about whether a beta calculated from a security's past relationship with the market actually predicts how that relationship will behave in future, leading some doubting economists to claim that beta is "dead".

This is auto-generated content. You can help to improve it.
0
Improve it
More
Collect to Blossary

Other Languages:

More

Member comments

You have to log in to post to discussions.

Related terms

betas
Medical devices; Radiology equipment

A beta is a high speed particle, identical to an electron, that is emitted from the nucleus of an atom.

beta
Banking; Investment banking

Measure of the sensitivity of an equity or a portfolio to the overall market. A beta of >1 indicates that the relevant share or portfolio is subject to larger earnings ...

beta
Economy; Economics

Part of an economic theory for valuing financial securities and calculating the cost of capital, known as the capital asset pricing model, beta measures the sensitivity of the ...

immaterial economy
Economy; Economics

An economy in which traditional investment in areas such as natural resources, equipment and infrastructures lags behind immaterial items such as training and research and ...

digital economy
Economy; Economics

The digital economy represents the persuasive use of IT (hardware, software, applications and telecommunications) in all aspects of the economy, including internal operations of ...

knowledge management
Economy; Economics

Management of the intellectual product that is generated by associating relationships among items of data and information in a given field. Source: Termium plus. Sub verbis ...

internet economy
Economy; Economics

A business environment created by networks of enterprises conducting e-commerce. (The "I" in "internet is normally spelled with a capital "I") Source: Samarajiva, Rohan. “How the ...

circular economy
Economy; Economics

The discipline which focuses on the design, development, operation, renewal and decommissioning of industrial facilities as ecological systems, with an emphasis on the ...

economic intelligence
Economy; Economics

The techniques for extracting essential information from a large volume of data and presenting it in an easy-to-understand form, hiding all complexity, making it suitable for ...

Terms in the News

Featured Terms

architected
  • 0

    Terms

  • 27

    Blossaries

  • 14

    Followers

Industry/Domain: Transportation Category: Bicycle & electric bicycle

Boris Bike

The Boris Bike is part of a public bicycle hire scheme in London, UK which was introduced in 2010. The schemes actual name is Barclays Cycle Hire but ...

Contributor

Featured blossaries

The Ice Bucket Challenge

Category: Entertainment   2 17 Terms

Most Widely Spoken Languages in the World 2014

Category: Languages   2 10 Terms

Browers Terms By Category

TERMS

SOCIAL

EXTRAS

SOLUTIONS