Beta
Financial term in the Investing category
Definition
A measure of a stock's volatility relative to the overall market. A beta of 1 means the stock moves with the market, above 1 means more volatile, below 1 means less volatile.
Frequently Asked Questions
What is Beta?
A measure of a stock's volatility relative to the overall market. A beta of 1 means the stock moves with the market, above 1 means more volatile, below 1 means less volatile.
Why is Beta important in personal finance?
Beta is an important investing concept that helps individuals make better financial decisions. Understanding Beta can improve your financial planning and help you achieve your money goals.
How does Beta relate to Alpha?
Beta and Alpha are related financial concepts. A measure of an investment's performance compared to a benchmark index. Positive alpha indicates outperformance, negative alpha indicates underperformance. Represents the value added by active management.
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