Beta is a measure of volatility. Specifically, it measures a stock's volatility to the broader market. If a stock has a beta of 1, its volatility is in line with market volatility.

Overall, the use of asset beta provides a deeper analysis of a company’s risks with a focus on the company’s debt. It is important when making any type of beta comparison that the betas aren ...

Reviewed by Somer Anderson The act of "unlevering" beta involves extracting the impact of debt obligations of a company before evaluating an investment's risk in comparison to the market.

Beta is critical to WACC calculations, where it helps 'weight' the cost of e ... (cost of equity) + (weight of debt) x (cost of debt). However, not all capital obligations involve debt and, ...