Beta refers to a numeric coefficient that measures the volatility or fluctuations of a stock’s price in relation to the changes in the overall market. It is also referred to as an asset’s systematic risk, market risk or hedge ratio. A stock’s volatility is the amount of uncertainty related to the size of changes in the stock’s value. When volatility is high, the stock’s value is spread out over a higher range. Generally, the S&P 500 benchmark of 1 is used to calculate the beta.
At this point, the importance of commercial awareness for aspiring lawyers is well documented. It is an increasingly sought-after characteristic in candidates. What constitutes commercial awareness is debatable and there are many definitions. This article will focus on developing three habits to develop commercial awareness. These habits can be seen as three key strategies which are defined as absorption, analysis, and explanation.