Beta coefficient is a relative index to measure the overall volatility of stock returns relative to performance evaluation benchmark returns. The higher the beta coefficient, the greater the volatility of the stock relative to the performance evaluation benchmark. If β is greater than 1, the volatility of the stock is greater than that of the performance evaluation benchmark. or vice versa, Dallas to the auditorium
If β is 1, the market will rise 10%, and the stock will rise10%; The market fell 10%, and the stock fell accordingly 10%. If β is 1. 1, the market will rise 10%, and the stock will rise 1 1%. When the market falls 10%, the stock falls 1 1%. If β is 0.9, the market will rise by 10% and the stock will rise by 9%; When the market fell 10%, the stock fell 9%.
Note: Grasp the meaning of β value.
◆ β= 1, indicating that the risk return rate of this single asset changes in the same proportion as the average risk return rate of market portfolio, and its risk status is consistent with that of market portfolio;
◆ β > 1, indicating that the risk return rate of this single asset is higher than the average risk return rate of market portfolio, so the risk of this single asset is greater than that of the whole market portfolio;
◆ β < 1, which means that the risk return rate of this single asset is less than the average risk return rate of market portfolio, so the risk degree of this single asset is less than that of the whole market portfolio.