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ErnieBilco

07/10/12 9:10 PM

#1725 RE: trade4proffits #1717


Beta
Beta is a measure of a stock's volatility in relation to the market. By definition, the market has a beta of 1.0, and individual stocks are ranked according to how much they deviate from the market. A stock that swings more than the market over time has a beta above 1.0. If a stock moves less than the market, the stock's beta is less than 1.0. High-beta stocks are supposed to be riskier but provide a potential for higher returns; low-beta stocks pose less risk but also lower returns.



Read more: http://www.investopedia.com/articles/stocks/04/113004.asp#ixzz20GvWbVZt