Beta

August 26th, 2017 by Kara in

A number representing a security’s risk, or volatility. Beta is the slope of the security characteristic line, thus measuring the security’s risk against that of the market (when the market moves, the security moves by a factor of b). A beta greater than one indicates higher volatility, b = 1 signifies volatility equal to that of the market, and b < 1 means lower volatility.

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