Beta [Finance] Law and Legal Definition

Beta is the volatility of the stock in relation to the market, or in other words the stock's sensitivity to market swings. [Central Nat'l Bank v. United States Dep't of Treasury, 912 F.2d 897, 901 (7th Cir. 1990)].

Beta is the measure of an asset's risk in relation to the market or to an alternative benchmark or factors. Market risk factors include, stock prices, interest rates, foreign exchange rates, and commodity prices.