Beta, represented by the Greek lowercase letter β, is also used in the formula for the weighted average cost of capital, which calculates a company’s cost of capital. This article, though ...

Beta is a measure that reflects how strongly a stock's price tends to move in relation to the broader market's movements. It helps investors estimate how much a stock might amplify or dampen the ...

The CAPM formula is as follows: As shown from the above equation, CAPM involves the risk-free rate of an investment like a U.S. Treasury bond, an asset’s beta, and the expected return of the market.