What Is BETA And What Does It Mean?
filed in Articles on Jan.02, 2009
Sometimes financial websites such as Google Finance include a special measurement called beta. Beta is essentially a measurement of the volatility of a specific stock, ETF, or mutual fund, in comparison with the overall market. A stock with a beta of 1 follows the market, a beta over 1 is more volatile than the overall market, and a beta less than 1 is less volatile than the overall market.
Examples
.5 = Less volatile than the overall market
1 = As volatile as the overall market
1.5 = More volatile than the overall market
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