What is the meaning of Beta (Coefficient)?

Beta (Coefficient) is a measure of the market/nondiversifiable risk associated with any given security in the market. A ratio of an individual's stock historical returns to the historical returns of the stock market. If a stock increased in value by 12% while the market increased by 10, the stock's beta would be 1. 2.

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APABarry Goldsmith. (2010). beta (coefficient). Retrieved September 20, 2026, from http://smartdefine.org/beta_(coefficient)/definitions/1148568
ChicagoBarry Goldsmith. 2010. "beta (coefficient)" http://smartdefine.org/beta_(coefficient)/definitions/1148568 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, beta (coefficient), Smart Define, viewed 20 September, 2026, <http://smartdefine.org/beta_(coefficient)/definitions/1148568>.
MLABarry Goldsmith. "beta (coefficient)" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/beta_(coefficient)/definitions/1148568>