Static Testing: A form of software testing where the software isn't actually used it checks mainly for the sanity of the code, algorithm, or document. It is used by the developer who wrote the code. 89. Stability Testing: Testing technique which attempts to determine if an application will crash.
Before we start, you'll need to understand a few key terms and concepts, namely alpha, beta, systematic risk and idiosyncratic risk. Beta - The return generated from a portfolio that can be attributed to overall market returns. Exposure to beta is equivalent to exposure to systematic risk. The alpha is the portion of a portfolio's return that cannot be attributed to market returns, and is thus independent from market returns.
In finance, the beta (Î²) of an investment is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors.The market portfolio of all investable assets has a beta of exactly 1. beta greater than one generally means that the asset both is volatile and tends to move up and down with the market. An example is a stock in a big technology company. Negative betas are possible for investments that tend to go down when the market goes up, and vice versa.