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 ...
Now in the series, let's move onto one of the most interesting subjects in valuation: beta. Discussing this crucial element of investing will helps us shed more light on the connected #7 top valuation ...
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 ...
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 ...
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 ...
Stock analysis can make money or save money, and beta accounting can help. Beta accounting compares a stock's return with the overall market fluctuation for the same time period. Assessing the risk of ...
Beta is a statistical measure used by stock analysts to factor the risk of a certain stock in terms of valuation. It determines the volatility of a stock within the market at the current point in time ...
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 ...
Investing in stocks involves inherent risk. As a stock owner, you are part owner in the company. As such, you participate in the positive growth of the company as well as the declines the stock ...