Define Beta

question 89

Essay

Define beta.

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Definitions:

Russell 2000

An index measuring the performance of approximately 2,000 smallest-cap American companies in the Russell 3000 Index, which represents the entire U.S. stock market.

Diversified Portfolio

A financial approach that diversifies holdings over multiple asset types to mitigate risk.

ETFs

Exchange-Traded Funds, investment funds traded on stock exchanges, much like stocks, which hold assets such as stocks, commodities, or bonds.

International Funds

Mutual funds that invest in a variety of securities from markets outside of the investor’s country of residence, aiming to diversify investment risk.