A measure of the expected return on a particular share compared to the expected return on shares with a similar beta coefficient, identifying the specific risk associated with a share as opposed to the systematic risk associated with securities of the same class.
A measure of the volatility of a share in relation to the overall market. A share with a high beta coefficient is likely to respond to stock market movements by rising or falling in value by more than the market average.
The CAPM is a formula used to determine the expected return on an investment by accounting for both the risk-free rate of return and the risk premium.
Systemic risk, also known as market risk or systematic risk, refers to the part of a security’s risk that is common to all securities within the same general class and cannot be eliminated by diversification. The measure of systemic risk for individual stocks is the Beta Coefficient.
In finance and economics, the term 'volatile' refers to the tendency for rapid and extreme fluctuations in the price of a particular asset such as stocks, bonds, or commodities. Market-related volatility in stocks is typically measured by the Beta Coefficient.
