Fluctuations of the price of any company's share than the average change of total share-value of the market is called Beta-co-efficient.

According to Besley and Brigham,” Sensitivity to market fluctuations is called its beta coefficient.”

According to Khan and Jain,” The beta-coefficient its an index of the degree of responsiveness/co-movement of security return with market return.”

According to L.J. Gitman,” The beta coefficient measures non diversifiable risk. It is an index of the degree of movement of an assets return in response to a change in the market return.”

Share it:  Cite

More from this Section

  • Needs approach
    Needs approach is a method for estimating amount of life insurance appropriate for a family ...
  • Benefit period
    Benefit period is a length of time benefits are paid in a disability income policy or ...
  • Soft Landing
    A Soft Landing means that the economy slows developing but still doesn't enter into a ...
  • Real estate loans
    Real estate loans is the credit secured by real property, including short-term credit ...
  • Banker's
    Banker's are a short-term credit investment created by a nonfinancial firm and guaranteed ...