Beta coefficient generally refers to beta coefficient, which is also called beta coefficient. It is a risk index used to measure the price fluctuations of individual stocks or stock funds relative to the entire stock market. Beta coefficient is a tool for assessing the systemic risk of securities. It is used to measure the volatility of a security or a portfolio of investment securities relative to the overall market. It is commonly used in investment terms such as stocks and funds.

Use of Beta:

1. Calculate the cost of capital and make investment decisions (only projects with a return rate higher than the cost of capital should be invested).

2. Calculate capital costs and formulate performance appraisal and incentive standards.

3. Calculate the cost of capital and conduct asset valuation (Beta is the basis of the cash flow discount model).

4. Determine the systematic risk of a single asset or portfolio for investment management of asset portfolios, especially for hedging (or speculation) in stock index futures or other financial derivatives.