LEVERED BETA | ||||||||||||||||||||||||||||

Definition | ||||||||||||||||||||||||||||

The Beta is a quantitative measure of the volatility of a given stock (or instrument) relative to the volatility of the market. A score greater than 1 means the stock is more volatile than the market, lower than one, less volatile. Most betas lie between 0.5 and 1.5. Infinancials use a simple beta calculation comparing the stock to its local country index, as shown below Betas values lying outside the range [-0.5; +2.5] will not be considered relevant and will be shown as N/A. | ||||||||||||||||||||||||||||

Country Indices | ||||||||||||||||||||||||||||

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Periods | ||||||||||||||||||||||||||||

Values are taken weekly, using the first close price available each week for the stock in question. Periods are defined as follows:
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Calculation Rules | ||||||||||||||||||||||||||||

The calculation divides the covariance of the stock return with the market return by the variance of the market return : thus : Beta = cov(ri,rm) / var(rm)where
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Reference | ||||||||||||||||||||||||||||

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