Financial Ratios

Beta

Beta measures a stock's volatility relative to the overall market. Beta above 1 means more volatile than market, below 1 means less volatile.

Example

A stock with beta 1.5 tends to move 1.5x the market movement.

Related terms

Volatility measures the degree of price variation over time. High volatility means larger price swings and higher risk.

Alpha measures investment performance relative to a benchmark. Positive alpha indicates outperformance, negative indicates underperformance.

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