why beta for each company is different
(Answer #1). The beta of a stock describes how the returns of the stock are correlated to the returns of the financial market as a whole. The value representing the returns of the financial market is that of the returns offered by a benchmark index.or example, in the US, the benchmark indexes that are used to determine the beta of stocks are the DJIA, the NASDAQ or the S&P 500 among many others. All firms that are in the same industry do not have the same beta as the financial fundamentals of each firm is different.