Beta in Finance: Definition and Formula

Mandeepsinh Jadeja
Introduction.
Beta is a critical concept in finance, acting as a bridge between risk assessment and investment decision-making.

It represents the volatility of an investment in relation to the market.

Understanding beta assists investors in navigating the complexities of market behavior and in making informed decisions.

This journey will take you through the definition, calculation, interpretation, and application of beta, providing a comprehensive view that equips you to use it effectively.

Steps To Follow