Beta measures a fund's sensitivity to market movements through the relationship between its excess return over Treasury Bills and the excess return of a benchmark index (which, by definition, has ). A fund with a beta of has performed better (or worse if ) than its benchmark index (after deducting the T-bill rate) in up markets and worse (or better if ) in down markets.

See also

Alpha, Beta Distribution, Beta Exponential Function, Beta Function, Beta Integral, Central Beta Function, Dirichlet Beta Function, Incomplete Beta Function, q-Beta Function, Regularized Beta Function, Sharpe Ratio

Related Wolfram sites

https://functions.wolfram.com/GammaBetaErf/Beta/, https://functions.wolfram.com/GammaBetaErf/Beta3/, https://functions.wolfram.com/GammaBetaErf/Beta4/

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Cite this as:

Weisstein, Eric W. "Beta." From MathWorld--A Wolfram Resource. https://mathworld.wolfram.com/Beta.html

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