The returns that are associated with factors driven by systematic market risks, which carry a premium (and hence are considered good risks). Beta measures the sensitivity of an investment‘s/ a security‘s (or a fund‘s) return with respect to a given risk factor and indicates the amount of risk exposure.

Beta returns are highly correlated with the broader market, and be estimated by using the capital asset pricing model (CAPM). These returns can be earned through strategic allocation of assets (in a fund or portfolio).