A measure of a fund’s sensitivity to market movements. The beta of the market is 1.00 by definition.
A beta of 1.10 shows that the fund has performed 10% better than its benchmark index in up markets and 10% worse in down markets, assuming all other factors remain constant.
Conversely, a beta of 0.85 indicates that the fund is expected to perform 15% worse than the market´s excess return during up markets and 15% better during down markets.
