Beta

InvestingGlossary term

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.

Related terms

AlphaA 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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