hxyume / Getty Images A stock's beta indicates how volatile its price is compared to other stocks. And that is a clue to the degree of risk you're taking in buying that stock. In short ...

Beta, represented by the Greek lowercase letter β, is also used in the formula for the weighted average ... A beta of zero means no volatility and no risk. The 5-year data from early 2017 to ...

Risk in the Treynor ratio refers to systematic risk as measured by a portfolio's beta. Beta measures the tendency of a portfolio's return to change in response to changes in return for the overall ...

The CAPM formula is: Cost of Equity (CAPM) = Risk-Free Rate of Return + Beta × (Market Rate of Return – Risk-Free Rate of Return) For example, if the risk-free rate is 2%, the market return is ...