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What is your stock/shares/Mutual funds risk tolerance? Low/Medium/High?
How do you measure risk?
One of the most popular indicators of risk is a statistical measure called beta. Stock analysts use this measure all the time to get a sense of stocks' risk profiles. Each stock/shares has individual, industry and and market risk. Beta is a measure of a stock's volatility in relation to the market. By definition, the market has a beta of 1.0, and individual stocks are ranked according to how much they deviate from the market. A stock that swings more than the market over time has a beta above 1.0 If a stock moves less than the market, the stock's beta is less than 1.0.
Next time you are considering investing, check out it's beta.
Happy Investing
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Posted by topi on 2009-11-03 14:46:25 | Rating: | Views: 13
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