Here are just a few examples of how beta is used in the real world: Apple (AAPL 0.58%) has a beta of 1.3, ... Purpose and Function. What Is Bond Convexity: Explanation and Importance.

What Is Beta? For example, a stock’s risk is measured against a benchmark stock index, such as the S&P 500 Index in U.S. trading. It’s useful in determining a ...

In a nutshell, beta is a measure of how reactive a stock is to overall market movements – particularly those of the S&P 500 benchmark index. Obviously, stocks move individually, and for a ...

It depends on the magnitude of the variance between sample means. The way to manage beta risk is by boosting the test sample size. An acceptable level of beta risk in decision-making is about 10%.

Smart beta strategies may use alternative weighting schemes such as volatility, liquidity, quality, value, size and momentum. In 2019, smart beta funds command $880 billion in total cumulative assets.