Learn how to calculate stock beta in Excel using historical price data and formulas—enhance your investment analysis with this step-by-step guide.

Learn to calculate unlevered beta and understand how it isolates market risk by removing debt impact, empowering investors to compare company risks effectively.

Stocks with betas higher than 1.0 are considered more volatile than the market, while stocks with betas lower than 1.0 are ...

If you have followed my articles Dual-Beta - The Smart Investor's Most Valuable Tool or The Dual-Beta Portfolio, Part 1 - Consumer Defensive Sector, you are fully aware how powerful it can be to be ...

Investors understand intuitively that some stocks are riskier than others. The capital asset pricing model attempts to quantify the common perception of risk using a term called beta. By understanding ...

Beta is a measurement of an asset’s risk compared to a benchmark, like the stock market. The market or benchmark used to calculate an asset’s beta always has a beta of 1. Stocks that have a return ...

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 “high ...

After we were contacted by an uninformed reader regarding our last post, Insider Monkey realized there are investors out there who don’t understand how to calculate alpha and beta. After doing some ...

The cornerstone of the Capital Asset Pricing Model (CAPM) is the idea that large portfolios can diversify away the idiosyncratic risk that is unique to individual stocks, leaving only the systematic ...

We often hear the word beta in the context of “beta test”. It’s a way of testing something (e.g. a software program) in a real-world situation to iron out any glitches before rolling it out to the ...

While ETF performance descriptions might bring to mind Mark Twain’s phrase “lies, damn lies, and statistics,” risk metrics are indispensible when evaluating a fund. When analyzing ETFs, we often ...