C

Glossary

Beta

Contextual — situational lens

What it measures

Volatility relative to S&P 500. > 1.5 significantly more volatile.

Formula

Cov(stock, market) / Var(market)

Benchmark

1.0 = same as S&P 500

Related metrics

Source

Sharpe, Capital Asset Prices (1964)

Previous

Asset Turnover

Next

Book Value per Share