Why beta is different

You can think of beta as the tendency of a security's returns to respond to swings in the market. For example, if a stock's beta is 1. R2: The coefficient of determination r-squared. This is the percentage in decimal form of variance in the dependent variable the stock that can be explained by the independent variable the index.

Standard Deviation of Error: The degree to which an individual probability value varies from the distribution mean. Number of Points: Indicates the number of observations used to calculate beta the more, the better. Example : The screenshot shows the result for the beta of Goldman Sachs. Depending on the security, you can often find data for the past years! The graph above shows the regression plotted. The independent variable the index is on the x-axis and the dependent variable the stock price is on the y-axis.

The latest observation is shown by a flashing red dot. The beta is leveraged if the firm has had long-term debt on its balance sheet for the past two fiscal years. You can check to see if the firm has long-term debt by using the command:.

It looks like you're using Internet Explorer 11 or older. This website works best with modern browsers such as the latest versions of Chrome, Firefox, Safari, and Edge. If you continue with this browser, you may see unexpected results. Business Research: Beta. Beta "Beta is an indicator of the risk associated with a particular share in relation to the risk of the equity market as a whole.

Finance 1. Weakness in shares of Walt Disney Co. A period of rising prices has clearly arrived, although so far it has not had a major effect on financial markets. In days gone by the Federal Reserve was much more concerned about inflation, and was more likely to raise interest rates to combat what was seen as a destabilizing threat to the economy. But after years of low inflation, the Fed is willing to wait and see if the trend calms down. Most likely it will to some degree, but how quickly and by how much remains to be seen.

For now, it appears as if the central bank may start raising the short-term interest rates it controls in the second half of To date, that has been far enough away to not shake the confidence of the bulls, particularly since tame bond yields have not created much competition for stocks.