What is beta in finance?

.. Beta is a term used in trading to indicate volatility or systematic risk of an asset compared to that of the overall market. Beta is one of the 5 technical risk ratios, is also sometimes known as the beta coefficient, and is calculated using regression analysis.

What is leveraged beta (equity beta)?

Levered beta (equity beta) is a measurement that compares the volatility of returns of a company’s stock against those of the broader market. In other words, it is a measure of risk, and it includes the impact of a company’s capital structure and leverage.

What stocks have a beta value?

Alphabet (GOOGL), the parent company of Google, has a 1.13 beta value. Apple (AAPL) has a 1.19 beta value. Amazon (AMZN) has a 1.23 beta value. Facebook (FB) has a 1.39 beta value. Walt Disney (DIS) has a 1.16 beta value. As you can see, these stocks have beta values that range from 1.17 to 2.00.

What is beta data & why is it important?

Beta data about an individual stock can only provide an investor with an approximation of how much risk the stock will add to a (presumably) diversified portfolio. For beta to be meaningful, the stock should be related to the benchmark that is used in the calculation. The S&P 500 has a beta of 1.0.