Cryptocurrency Q&A What is beta in stocks?

What is beta in stocks?

Nicola Nicola Tue Feb 25 2025 | 6 answers 658
I've been investing in stocks for a while, but there's one concept I'm still not clear about. I often hear the term 'beta' in relation to stocks, but I don't fully understand what it means. Could someone explain what beta is in the context of stock investing? What is beta in stocks?

6 answers

amelia_harrison_architect amelia_harrison_architect Thu Feb 27 2025
When a stock has a beta value exceeding 1.0, it signifies that its price movements are more pronounced than those of the overall market.

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Lucia Lucia Thu Feb 27 2025
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BlockchainMastermind BlockchainMastermind Thu Feb 27 2025
This higher beta implies greater volatility, meaning the stock is likely to experience larger swings in price both upwards and downwards.

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KpopHarmonySoulMate KpopHarmonySoulMate Thu Feb 27 2025
Conversely, a beta below 1.0 indicates that the stock is less volatile compared to the broader market.

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CherryBlossomBloom CherryBlossomBloom Thu Feb 27 2025
Such stocks tend to exhibit more muted price movements, experiencing smaller increases and decreases in value.

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