| Beta Coefficient |
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A
means of measuring the volatility of a security or portfolio of securities
in comparison with the market as a whole. Beta is calculated using
regression analysis. A beta of 1 indicates that the security's price
will move with the market. A beta greater than 1 indicates that the
security's price will be more volatile than the market. A beta less
than 1 means that it will be less volatile than the market.
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Most high-tech NASDAQ based stocks have a beta greater than one, they offer a higher rate of return but they are also very risky. The Beta is a good indicator of how risky a stock is.
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