Important Financial Investment Terms
Thousands of investors have told us they are confused by the investment jargon that is used by financial advisors. We also know some terms, that investors don't understand, are used by advisors as sales ploys. They establish themselves as experts when they define a term you may not understand.
There is an alternative. We have defined more than 1,500 commonly used financial terms. Look-up a definition by entering the term in the search engine or using the alphabetical search service.
Definition of 'Portfolio Beta'
Used to measure the relative volatility of a portfolio. The market has a beta of 1. Portfolios with betas of more than one are considered to be more volatile than the market. Portfolios with betas of less than one are considered to be less volatile than the market. Beta has no predictive value so it should be used to compare the volatility of funds to each other.