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Banque nationale de Belgique Societe anonyme Beta

What is the Beta of Banque nationale de Belgique Societe anonyme?

The Beta of Banque nationale de Belgique Societe anonyme is 0.72

What is the definition of Beta?



BETA indicates whether a stock is more or less volatile than the market as a whole. A beta less than 1 indicates that the stock is less volatile than the market, while a beta more than 1 indicates that the stock is more volatile. Volatility is measured as the fluctuation of the price around the mean.

Beta 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. A beta below 1 can indicate either an investment with lower volatility than the market, or a volatile investment whose price movements are not highly correlated with the market. A beta greater than one generally means that the asset both is volatile and tends to move up and down with the market. Beta is important because it measures the risk of an investment that cannot be reduced by diversification. It does not measure the risk of an investment held on a stand-alone basis, but the amount of risk the investment adds to an already-diversified portfolio. In the capital asset pricing model, beta risk is the only kind of risk for which investors should receive an expected return higher than the risk-free rate of interest.

Beta of companies in the Finance sector on EURONEXT compared to Banque nationale de Belgique Societe anonyme

What does Banque nationale de Belgique Societe anonyme do?

Banque nationale de Belgique Société anonyme operates as the central bank of Belgium. The company's activities include determination and implementation of the Eurosystem's monetary policy; printing and issuing of notes and coins; collection, compilation, analysis, and distribution of economic and financial information; and promotion of monetary and financial stability. It also engages in the centralization of the revenue and expenditure of the federal state; administration of fines and settlements; combating money laundering; and international settlements. In addition, the company provides macro prudential and prudential supervision, oversight of financial market infrastructures and critical service providers, and crisis management services; and a range of services to individuals and schools, such as exchange of banknotes and coins, securities and coupons, central individual credit register for consumer credits and mortgage loans, and documentation base primarily specialized in economics, finance, and monetary policy, as well as collects and publishes annual accounts of Belgian enterprises. Further, it offers services to central banks comprising reserve management services, such as custody accounts and remuneration of the cash accounts to non-euro area countries, and central banks or monetary authorities, as well as international organization other than community institutions and bodies. The company was founded in 1850 and is headquartered in Brussels, Belgium.

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