Beta - Revision history

imported>Doug Williamson: Add link.

2023-03-27T09:16:17Z

Add link.

← Older revision		Revision as of 09:16, 27 March 2023
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	* [[Equity risk]]		* [[Equity risk]]
	* [[Market risk]]		* [[Market risk]]
			* [[Market risk premium]]
	* [[Proxy]]		* [[Proxy]]
	* [[Regression analysis]]		* [[Regression analysis]]

imported>Doug Williamson: Add link.

2023-03-19T13:40:27Z

Add link.

← Older revision		Revision as of 13:40, 19 March 2023
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	* [[Equity risk]]		* [[Equity risk]]
	* [[Market risk]]		* [[Market risk]]
			* [[Proxy]]
	* [[Regression analysis]]		* [[Regression analysis]]
	* [[Risk]]		* [[Risk]]

imported>Doug Williamson: Add link.

2022-10-14T19:34:26Z

Add link.

← Older revision		Revision as of 19:34, 14 October 2022
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	* [[Risk]]		* [[Risk]]
	* [[Smart beta]]		* [[Smart beta]]
			* [[Standard deviation]]
	* [[Standardised Approach]]		* [[Standardised Approach]]
	* [[Ungeared beta]]		* [[Ungeared beta]]
	* [[Utility]]		* [[Utility]]
			* [[Value at risk]]
	* [[Volatility]]		* [[Volatility]]

	[[Category:Corporate_finance]]		[[Category:Corporate_finance]]
	[[Category:Identify_and_assess_risks]]		[[Category:Identify_and_assess_risks]]

imported>Doug Williamson: Link with Ungeared beta page.

2019-02-09T10:52:57Z

Link with Ungeared beta page.

← Older revision		Revision as of 10:52, 9 February 2019
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	* [[Smart beta]]		* [[Smart beta]]
	* [[Standardised Approach]]		* [[Standardised Approach]]
			* [[Ungeared beta]]
	* [[Utility]]		* [[Utility]]
	* [[Volatility]]		* [[Volatility]]

imported>Doug Williamson: Link with Equity beta page.

2019-02-09T10:51:10Z

Link with Equity beta page.

← Older revision		Revision as of 10:51, 9 February 2019
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	* [[Business risk]]		* [[Business risk]]
	* [[Capital asset pricing model]]		* [[Capital asset pricing model]]
			* [[Equity beta]]
	* [[Equity risk]]		* [[Equity risk]]
	* [[Market risk]]		* [[Market risk]]
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	[[Category:Corporate_finance]]		[[Category:Corporate_finance]]
			[[Category:Identify_and_assess_risks]]

imported>Doug Williamson: Remove redundant wording.

2018-08-19T10:42:31Z

Remove redundant wording.

← Older revision		Revision as of 10:42, 19 August 2018
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	Beta is a measure of risk, not a risk in itself.		Beta is a measure of risk, not a risk in itself.

	It measures how much ~~the~~ performance ~~of the individual business~~ responds - well or badly - when the rest of the market generally is doing well or badly.		It measures how much performance responds - well or badly - when the rest of the market generally is doing well, or badly.

	Utility providers - like water companies - are relatively stable and have low betas.		Utility providers - like water companies - are relatively stable and have low betas.

imported>Doug Williamson: Space added to differentiate definitions.

2018-01-31T10:36:09Z

Space added to differentiate definitions.

← Older revision		Revision as of 10:36, 31 January 2018
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	The historical beta is the slope of the line of best fit comparing the historical returns on the individual security with those of the market as a whole.		The historical beta is the slope of the line of best fit comparing the historical returns on the individual security with those of the market as a whole.



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	Under the Standardised Approach (TSA) for operational risk capital adequacy calculation, beta is the weighting applied to gross income, to calculate the measure of risk.		Under the Standardised Approach (TSA) for operational risk capital adequacy calculation, beta is the weighting applied to gross income, to calculate the measure of risk.

imported>Doug Williamson: Link with Utility page.

2018-01-21T19:39:39Z

Link with Utility page.

← Older revision		Revision as of 19:39, 21 January 2018
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	* [[Smart beta]]		* [[Smart beta]]
	* [[Standardised Approach]]		* [[Standardised Approach]]
			* [[Utility]]
	* [[Volatility]]		* [[Volatility]]

	[[Category:Corporate_finance]]		[[Category:Corporate_finance]]

imported>Doug Williamson: Add examples.

2018-01-21T19:38:43Z

Add examples.

← Older revision		Revision as of 19:38, 21 January 2018
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	In investment evaluation, beta is a measure of market risk and volatility.		In investment evaluation, beta is a measure of market risk and volatility.

	Beta can refer to the market risk for a single financial asset or to an entire portfolio. ~~By definition, the beta of the whole market is one.~~		Beta can refer to the market risk for a single financial asset or to an entire portfolio.

	Therefore a beta of greater than 1 means that, on average, the asset is expected to increase in value by more than the market when the market is rising – and to reduce in value by more than the market when the market is falling. An asset with a beta less than 1 is expected - on average - to increase and to reduce in value by less than the market.
			Beta is a measure of risk, not a risk in itself.

			It measures how much the performance of the individual business responds - well or badly - when the rest of the market generally is doing well or badly.

			Utility providers - like water companies - are relatively stable and have low betas.

			'Consumer discretionary' sectors are relatively unstable and have higher betas.


			By definition, the beta of the whole market is one.

			Therefore a beta of greater than 1 means that, on average, the asset is expected to increase in value by more than the market when the market is rising – and to reduce in value by more than the market when the market is falling.

			An asset with a beta less than 1 is expected - on average - to increase and to reduce in value by less than the market.


	Beta for a security can be calculated for historical periods using regression analysis.		Beta for a security can be calculated for historical periods using regression analysis.

	The historical beta is the slope of the line of best fit comparing the historical returns on the individual security with those of the market as a whole.		The historical beta is the slope of the line of best fit comparing the historical returns on the individual security with those of the market as a whole.

imported>Doug Williamson: Link with Beta test page.

2017-04-11T07:26:24Z

Link with Beta test page.

← Older revision		Revision as of 07:26, 11 April 2017
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	* [[Alpha]]		* [[Alpha]]
	* [[Asset beta]]		* [[Asset beta]]
			* [[Beta test]]
	* [[Business risk]]		* [[Business risk]]
	* [[Capital asset pricing model]]		* [[Capital asset pricing model]]