Leveraged beta

Leveraged beta

The beta of a leveraged required return; that is, the beta as adjusted for the degree of leverage in the firm's capital structure.

Leveraged Beta

The volatility of a company relative to the market as a whole after adjusting for the amount of leverage. The leveraged beta is often lower than the unlevered beta (that is, the leveraged beta indicates less volatility) because debt can result in tax advantages that reduce volatility. See also: Beta.