Beta is a way to quantify a stock’s systematic risk. In simple terms, systematic risk refers to investment risk related to the movement of the entire market. Beta can help you answer questions like, ...

Using beta to evaluate a stock’s risk Beta allows for a good comparison between an individual stock and a market-tracking index fund, but it doesn’t offer a complete portrait of a stock’s risk.

Portfolio beta is the measure of an entire portfolio’s sensitivity to market changes while stock beta is just a snapshot of an individual stock’s volatility.

Finally, calculate the variance of the index (derived from the index daily price changes to show how they are distributed around the average), and divide the covariance by the variance.

When it comes to evaluating stocks, one of the most widely used risk measures is Beta. It tells investors how a stock or a portfolio moves in relation to the overall market, usually represented by an ...

To calculate a price-weighted average, or any arithmetic average for that matter, add the numbers (stock prices) together and divide by the number of stocks in the average.

How Is the U.S. Dollar Index Calculated? The base value for the U.S. Dollar Index was set at 100, and its range has varied quite a bit since its inception in 1973.