what is beta in stock market?

 In the stock market, "beta" is a measure of the volatility of a stock or portfolio in relation to the overall market. A beta of 1 indicates that the stock or portfolio's price will move with the market, while a beta less than 1 means it is less volatile than the market, and a beta greater than 1 indicates higher volatility. A stock with a beta of 2, for example, is expected to be twice as volatile as the market. Beta is used in the Capital Asset Pricing Model (CAPM) to calculate the expected return on an investment. It is a measure of systematic risk.

Comments

Popular Posts