Beta
Definition
A measure of an asset's sensitivity to overall market movements. Beta = 1 moves with the market; >1 is more volatile; <1, less.
Example
Utility stocks often have betas around 0.5; tech stocks, 1.5 or more.
A measure of an asset's sensitivity to overall market movements. Beta = 1 moves with the market; >1 is more volatile; <1, less.
Utility stocks often have betas around 0.5; tech stocks, 1.5 or more.