What does beta mean in stocks
A risk-averse investor, for example, may want to avoid overweighting their portfolio with high-beta stocks to avoid excessive volatility. Individual stock betas are For the stocks considered in our study, daily returns are available. Betas are therefore estimated from daily stock returns and corresponding market returns over Li was circulated under the title “Roughing up the CAPM: Jump betas and the cross section of expected stock returns.” We are grateful to Bill Schw- ert (the editor),