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By definition, the market as a whole has a beta of 1, and everything else is defined in relation to that: ... targeting high-beta stocks for potentially higher returns with more risk, or low-beta ...
Beta is the hedge ratio of an investment with respect to the stock market. For example, to hedge out the market-risk of a stock with a market beta of 2.0, an investor would short $2,000 in the stock market for every $1,000 invested in the stock. Thus insured, movements of the overall stock market no longer influence the combined position on ...
The average investor may not be familiar with what beta means, but they are no doubt fully aware of what it represents. Although there are different types of risk in the market, a stock's beta...
High beta stocks are a favorite of many investors who aren't afraid of taking big risks in order to earn jaw-dropping returns. So what exactly are high.
Alpha is a measure of the active return on an investment, the performance of that investment compared with a suitable market index.An alpha of 1% means the investment's return on investment over a selected period of time was 1% better than the market during that same period; a negative alpha means the investment underperformed the market.
Although alternative investment is a general term, (commonly defined as any investment other than stocks, bonds or cash), alternative beta relates to the use of hedge funds. At its most basic, a hedge fund is an investment vehicle that pools capital from a number of investors and invests in securities and other instruments. [ 2 ]
Investors, whether beginner or seasoned professionals, all have a threshold for risk. Some prefer to play it safe and favor a low-risk investment plan while others are more advantageous with a ...
Following is a glossary of stock market terms. All or none or AON: in investment banking or securities transactions, "an order to buy or sell a stock that must be executed in its entirely, or not executed at all". [1] Ask price or Ask: the lowest price a seller of a stock is willing to accept for a share of that given stock. [2]