What does the beta of a stock measure?

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Corporate Finance The Core

ISBN: 9781292158334

4th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Feb 29, 2024 04:01 AM

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The beta of a stock is found by running a regression with the monthly return on a market index as the explanatory variable and the monthly return on the stock as the dependent variable. The beta of...
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What does the beta of a stock measure?

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The beta of a stock is a measure of its systematic risk or sensitivity to market movements Specifica...View the full answer

Corporate Finance The Core

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