A financial measure of a fund's sensitivity to market movements which measures the relationship between a fund's excess return over Treasury Bills and the excess return of a benchmark index (which, by definition, has beta=1). A fund with a beta of beta has performed r=(beta-1)×100% better (or |r| worse if r<0) than its benchmark index (after deducting the T-bill rate) in up markets and |r| worse (or |r| better if r<0) in down markets.

See also

Alpha, Beta Distribution, Beta Exponential Function, Beta Function, Beta Integral, Central Beta Function, Dirichlet Beta Function, Incomplete Beta Function, q-Beta Function, Regularized Beta Function, Sharpe Ratio

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Weisstein, Eric W. "Beta." From MathWorld--A Wolfram Web Resource.

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