BNET Business Dictionary

Business Definition for: Beta Rating

  • a means of measuring the volatility (or risk) of a stock or fund in comparison with the market as a whole.

    The beta of a stock or fund can be of any value, positive or negative, but usually is between +0.25 and +1.75. Stocks of many utilities have a beta of less than 1. Conversely, most high-tech NASDAQ-based stocks have a beta greater than 1; they offer a higher rate of return but are also risky.

    Both alpha and beta ratings should be readily available upon request from investment firms, because the figures appear in standard performance reports. It is always best to ask for them, because beta calculations can involve mathematical complexities.

  • See also Alpha Rating

Additional Resources

Beta: ESPN poised for spending gains.(Surveys)
ESPN topped a Beta Research Corp. survey of advertising executives for the third year in a row. On a five-point scale, Beta said 89% of survey respondents awarded ESPN a "4" or "5" rating when it comes to brand image. The...
Tags: advertisement, brand image, cable, ESPN, network, survey
Research articles 2005-01-17
Beta: Know the Risk
How should investors assess risk in the stocks they buy or sell? As one can imagine, the concept of risk is hard to pin down and factor into stock analysis and valuation. Is there a rating - some sort of number, letter, or phrase - that will do the trick?...
Tags: Stock, Investopedia, Investment, Finance
White papers 2004-11-30
Fitch Model Tracks Rating Transition & Spread Migration on LSS CDOs
LONDON & NEW YORK -- Fitch Ratings, the international rating agency, has today launched a beta version of a model that allows users to estimate the effect of rating transition and spread migration in leveraged super-senior LSS transactions. Fitch's core CDO modeling tool, the Fitch VECTOR Default model, has been...
Tags: Fitch Ratings
Research articles 2005-09-07
Montgomery Securities Analyst David Crossen Assumes Coverage of Biogen, Inc., BGEN, with a BUY Rating
SAN FRANCISCO--BUSINESS WIRE--Oct. 13, 1995--Montgomery Securities Analyst David Crossen has assumed coverage of Biogen, Inc. BGEN with a BUY rating.Crossen expects the company to earn $1.00 per share in Fiscal Year December 1996 and $2.90 per share in Fiscal Year 1997. His 12-month target price is $73, or 27%...
Tags: analyst, Business Wire, Government, HEALTHCARE
Research articles 1995-10-13
Montgomery Securities Initiates Coverage of Novoste Corporation with a BUY Rating
SAN FRANCISCO--BUSINESS WIRE--June 18, 1996--Montgomery Securities Analyst Kurt Kruger has initiated coverage of Novoste Corporation (NASDAQ: NOVT) with a BUY rating.Kruger expects the company to earn $1.66 per share and reach sales of $110 million in Fiscal Year December 2000. His target price range is $18-28, or 44-124 percent...
Tags: Business Wire, patient
Research articles 1996-06-18
Herman Miller Marketplace-Zeeland, Michigan: Rooftop Comfort System Contributes to LEED Gold Rating
Herman Miller, Inc. is a leading global provider of office furniture and services for the workplace. Products include office furniture, storage equipment, office architecture components, and systems for information management. The firm also has a longstanding commitment to green building design, being one of the original sponsors of the U.S....
Tags: American Standard Inc., Storage, Hardware
Case studies
Apple stock seen poised to pop after record setting quarter
By Neil HughesPublished: 09:05 AM EST Wall Street analysts have raised their price targets for Apple stock yet again, after the company posted another recession defying blockbuster quarter with record Mac and iPhone sales.Apple announced Monday that its fourth-quarter profits surged more than 46 percent to $1.67 billion, as the...
Tags: Apple Inc., Apple iPhone, Apple Macintosh
News items 2009-10-20
Mozilla fixes 16 flaws with Firefox 3.5.4
Computerworld - Mozilla today patched 16 vulnerabilities in Firefox, 11 of them critical, as it updated the open-source browser to version 3.5.4. The 11 critical Firefox 3.5 vulnerabilities were located in a variety of components, including Web worker calls, the GIF color map parser, the string-to-number converter, a trio of...
Tags: Mozilla Firefox, Mozilla Corp.
News items 2009-10-28
Apple's new iMacs viewed as boon for sagging desktop sales
By Neil HughesPublished: 08:40 AM EST Related AppleInsider articles:Apple expected to report record sales of 2.8...Accounting rule change expected to take effect...Closing the GAAP: New rule expected to be...Mac sales grow 7% as Apple projected to sell...Another take: Steve Jobs appearance not...While sales of portable machines saw tremendous growth during...
Tags: Apple Inc., Apple Macintosh, Apple iMac
News items 2009-10-21
Hitachi America, Ltd., Completes 300mm EMA and MDC Testing On Its M-700 eCR Etch Tool
CARROLTON, Texas--BUSINESS WIRE--Sept. 14, 1998-- Hitachi America, Ltd., today announced the successful completion of the Equipment Maturity Assessment EMA and the Mechanical Dry Cycle MDC testing of its M-700 eCR Etch System designed for 300mm wafers.The EMA was performed under supervised conditions, in accordance with the International 300mm Initiative (I300I)...
Tags: Business Wire, HARDWARE, PRODUCTIVITY, Semiconductors, tool, wafer
Research articles 1998-09-14
MARKET MOVERS
bCable & Wireless 130.75p (up 8.5p, 6.9 per cent). Traders pile into so-called high beta stocks which allow investors to best take advantage of rising global stock markets. bThus Group 32.5p (up 1.75p, 5.7 per cent). Investec Securities reiterates its "buy" rating on the alternative telecom carrier....
Tags: Investec Ltd.
Research articles 2004-03-26
Fitch: Teleconf 7/26 on Prism Feedback, Available Capital, Calibration and Introductory Period
NEW YORK & LONDON -- Fitch Ratings will hold a conference call on Wednesday, July 26 at 10 a.m. ET / 15:00 BST to discuss today's launch of the formal 'introductory period' of Prism; the just-released 'beta' version of the capital model; and the recent release of its two latest...
Tags: Fitch Ratings
Research articles 2006-07-24
Fitch Proposes New Corporate CDO Methodology
NEW YORK -- Fitch Ratings announced today that it has made significant proposals to change its rating methodology for corporate CDOs. The agency has published an exposure draft of its methodology revisions along with a beta model and is seeking market feedback regarding the changes. Fitch anticipates that the final...
Tags: Fitch Ratings
Research articles 2008-02-05
Fitch Discusses Proposed Corporate CDO Criteria; Thursday 2/7 10AM
NEW YORK & LONDON -- Fitch Ratings will host a webcast on Thursday, Feb. 7 at 10:00 a.m. ET to discuss the agency's proposals to change its rating methodology for corporate CDOs. Fitch has published an exposure draft of its methodology revisions along with a beta model and is seeking...
Tags: Fitch Ratings
Research articles 2008-02-05
Fitch Discusses Proposed Corporate CDO Criteria Today @ 10AM ET
NEW YORK & LONDON -- Fitch Ratings will host a webcast this morning at 10:00 a.m. ET to discuss the agency's proposals to change its rating methodology for corporate CDOs. Fitch has published an exposure draft of its methodology revisions along with a beta model and is seeking market feedback...
Tags: Fitch Ratings
Research articles 2008-02-07
TriPlay launches its SuperMessaging system in Germany
TriPlay technology has been displayed on the beta site of T-Online and received the highest rating among surfers NEW YORK -- TriPlay, the leader in the converged systems for the transfer of messages and media files between various end user devices, announced today the launch of its SuperMessaging system...
Tags: Deutsche Telecom Ltd.
Research articles 2008-02-05
Jacobs Engineering: A Constructive Long-Term View
Paul Price submits:Jacobs Engineering Group JEC provides engineering, procurement, construction, and maintenance services to a wide range of customers, including oil and gas, chemical, pharmaceutical companies as well as for U.S. federal government agencies. Most work takes place in the USA, U.K. and Ireland. Jacobs has had an enviable...
Tags: Materials & Industrials, Paul Price, Jacobs Engineering Group Inc.
External links 2009-10-14
iPhone supply issues could make Apple disappoint on Wall Street
By Neil HughesPublished: 09:20 AM EST Related AppleInsider articles:Apple expected to report record sales of 2.8...Apple predicted to surprise with Oct. 19...Accounting rule change expected to take effect...Mac sales grow 7% as Apple projected to sell...Apple's Mac, iPod sales see slight rebound in...While demand for the iPhone remains high, Apple's...
Tags: Apple Inc., Apple iPhone
News items 2009-10-19
CE Association on California HDTV Ban: It's Stupid. We Agree
The Consumer Electronics Association has publicly reacted to California legislators' ban on inefficient TVs by saying "You're all dumb, with about the same grasp on technology as Homer Simpson." I'm paraphrasing, but the CEA has a point. The California...
Tags: TV, Consumer Electronics Association
News items 2009-11-19
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