Explain how to estimate the beta of a stock. Explain the logic regarding how beta serves as a measure of a stock's risk.
Please explain this a simply as possible so that I may understand.© BrainMass Inc. brainmass.com June 3, 2020, 11:31 pm ad1c9bdddf
Beta coefficient, or beta for short, is the amount of systematic risk present in a particular risky asset relative to that in an average risky asset. In other words, beta coefficient is used to measure the level of systematic risk for different investments. Systematic risks are ...
The expert explains how to estimate the beta of a stock.The logic regarding how beta serves as a measure of a stock's risk is determined.