Beta
How much an investment moves relative to the market.
Definition
Beta measures the volatility of a stock or fund relative to the overall market. A beta of 1 moves in line with the market; above 1 is more volatile (higher risk/reward); below 1 is less volatile.
Example
A stock with a beta of 1.5 tends to rise or fall about 50% more than the market — amplifying both gains and losses.
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