Beta
Technical analysisHow much a stock moves for a given move in the index.
In plain terms
Beta 1.6 means a 10% index fall usually takes it down 16%. That is leverage, not skill.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 3 terms
Read the full lesson →
Smart beta
Technical analysisAn index built on a rule other than market capitalisation.
In plain terms
A factor tilt in index-fund clothing. The name is marketing; the method is a published, mechanical rule you can read.
Systematic risk
Risk & psychologyRisk from the whole market that diversification cannot remove.
In plain terms
Beta measures your exposure to it. A high-beta portfolio carries it without borrowing.