Beta
Risk Management
Definition
A measure of a stock's volatility relative to the overall market (S&P 500), where beta > 1 indicates higher volatility and beta < 1 indicates lower volatility than the market.
Key Points
- Beta = 1: moves with market
- Beta > 1: more volatile than market
- Beta < 1: less volatile than market
Quick Info
Category
Risk Management
Related Topics
volatility
systematic risk
correlation
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