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What is beta?

A measure of an asset’s sensitivity to broad market movements. A beta above 1.0 means above-market sensitivity and, under CAPM, requires a return above the market return.

Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.

Related terms

From the free Real Estate Finance course by Devon Coombs, CPA, MBA.