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What is Beta in stock markets?

Beta refers to the measure of fluctuations in a stock, volatility, risk or even a portfolio of the whole market as a whole. It is thus responsiveness of the price of a stock to the changes observed in the stock market. It is also called Beta Coefficient and is generally computed using regression analysis. It […]

What is “Abnormal Rate of Return” in stocks?

Abnormal Rate of Return is the return on a given stock or portfolio over a specified period of time. This is usually higher than the expected rate of return or the benchmark. It is also known as ‘alpha’ and is a risk-adjusted performance measure of the stock. The expected rate of return is usually predicted […]