What Is Beta Of An Asset?

QuestionsWhat Is Beta Of An Asset?
nihalshaikh9881 Staff asked 4 weeks ago

Beta of an asset is a way of measuring systematic risk of an asset. It shows how price of a security responds to changes in market price. It indicates the extent of movement of the returns of the stock with respect to the movement of market returns. Assets that are riskier than average will have Betas that exceed 1 and assets that are safer than average will have Betas lower than 1. The riskless asset will have a value of Beta=0. The Beta of the market portfolio or the average of Betas across al assets in the market is 1.