# Beta

- Canonical URL: https://www.gerhardmerk.de/beta
- Post ID: 594514
- Modified: 2023-07-25T20:59:14+00:00
- Language: en

## Definition

Measure of the relationship between the price movement of a security, in the narrower sense of a share (e.g. Deutsche Telekom AG), and the share index, e.g. Dax: Dax. A beta factor of > 1 means that the corresponding security is subject to greater fluctuations in earnings, and therefore CETERIS PARIBUS also carries a greater risk. - The beta factor plays a role especially in hedging transactions to determine the required number of contracts for stock index futures. - See stock market volatility, movement size, cost of equity. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1