BETA - A measure of market-sensitivity
ie. the extent to which a share or a portfolio fluctuates
with the market. Beta is a statistical estimate, based
on historical data, of the average percentage change
in a fund's or a security's rate of return corresponding
to a one percent change in the market. For example,
a security (or portfolio) with a beta of 1.2 might
be expected to perform some 20% better than the market
when it rises, and 20% worse when it falls. Similarly,
a beta of 0.5% implies a movement equal to only half
the market's rise or fall. (See also Alpha).
