Results for “Beta”
11 terms
Beta
A measure of how much an asset's return moves relative to the market's, on average.
Funds, ETFs & Index InvestingSmart Beta
A rules-based index strategy that weights constituents by a chosen factor rather than by market capitalisation.
Risk & Portfolio ManagementTreynor Ratio
Return above the risk-free rate per unit of systematic risk, measured by beta.
Fundamental Analysis & ValuationCapital Asset Pricing Model
A model that estimates the return required on an asset as the risk-free rate plus a premium proportional to its market risk.
Market Basics & InstrumentsDefensive Stock
A share whose earnings hold up through downturns because demand for its products barely changes with the economy.
Risk & Portfolio ManagementR-Squared
The proportion of a portfolio's return variation that is explained by movements in its benchmark.
Risk & Portfolio ManagementSystematic Risk
Risk affecting the entire market that cannot be removed by diversification.
Risk & Portfolio ManagementAlpha
The return earned above what an asset's risk exposure would have predicted.
Fundamental Analysis & ValuationCost of Equity
The return shareholders require for bearing the risk of owning a company's shares.
Risk & Portfolio ManagementHedging
Taking an offsetting position to reduce the loss an existing exposure would suffer from an adverse move.
Derivatives, Futures & OptionsIndex Futures
A futures contract whose underlying is a stock market index rather than a single security.