| Where can you find a company's beta coefficient? |
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ValueLine Investment Survey The print version of ValueLine is held in the First Floor Reading Room of Regenstein, call number HG4501.V26. The CD-ROM version of ValueLine is loaded on computer A-11, first floor Regenstein Library. We also have back issues on microfilm, call number microfmHG4501.V26 OneSource. From the Company Profile page, select Ratio Comparisons or Financial Health as an option under Financial Reports. Standard & Poor's NetAdvantage. Select Company Profile, type in name or ticker. Beta is listed under Valuation. Bloomberg Available in the Hyde Park Center and Gleacher Center computer labs. Find beta using the commands Ticker <Equity Key> Beta Go. Bloomberg allows you to choose your time period and index for calculating beta. |
| Definitions of Beta |
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Beta coefficient. A measure of how variations in the return on a particular share correlate with variations in the return on a market index. The return on a share is the change in price plus any distribution of dividends. If St is the proportional return on a share from time t – 1 to time t, and Mt is the proportional return on the market index, is calculated by finding the best fit to St = + Mt + t. < 0 means that St moves against the market; a zero or low value of means that the share has mainly idiosyncratic risk, independent of overall market movements; a positive value of means that St moves with the market, and > 1 means that the share more than reflects movements in the market. Source: "beta coefficient", A Dictionary of Economics. Ed. John Black. Oxford University Press, 1997. Oxford Reference Online. Oxford University Press. 5 March 2003. Beta coefficient. A measure of the responsiveness of the expected return on a particular financial security relative to movements in the average expected return on all other securities in the market. The Financial Times all-share index or the Dow-Jones index are usually taken as proxy measurements for general market movements. In the capital-asset pricing model, the beta coefficient () is taken as a measure of the market (or non-diversifiable) risk of a particular security. The beta coefficient links the return on the security and the average market return. The average market risk of all securities is where = 1, that is, a 10% increase in market return is reflected as a 10% increase in the return of, say, security A. If the return on, say, security B, is 20%, but there is only a 10% increase in market return, this security has a = 2 which indicates a risk greater than the market. If security C has a = 0.5, this indicates a security less risky than the market in general. See efficient-markets hypothesis. Source: "beta coefficient", Collins Dictionary of Business. Accessed on 05 March 2003 at xreferplus. 3. Beta Equation (STOCKS) |
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