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In an asset what is Beta

In an asset what is Beta?

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Beta of an asset is a method of evaluating systematic risk of an asset. It describes how price of a security responds to alters in market price. It points to the extent of movement of the returns of the stock with respect to the movement of market returns. Assets which are riskier than average will have Betas which exceeds one asset and which are safer than average will have Betas lower than one. The riskless asset will have a value of Beta is equivalent to zero. The Beta of the market portfolio or the average of Betas across all assets in the market is one.

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