Have you ever wondered how you can quickly and easily determine the risk of a stock or stock portfolio? You can start by doing a little bit of research on the beta coefficient of investments that you are considering. The beta coefficient of a stock or stock portfolio is the measure of volatility of a stock or stock portfolio’s return versus that of the rest of the market. Typically the ‘rest of the market’ is a benchmark index which has a set beta of 1.
For example, if you are interested in a s...
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