Beta is the usual measure of volatility. A beta of 1.0 indicates a stock that perfectly tracks an reference index such as the S&P 500 Index. A high beta stock is more volatile and changes more than the index. A low beta stock is less volatile and changes less than the index.
Related Fool Articles
- Bear market
- Bull market
- High beta
- Low beta
- Market price
- Portfolio management
- Risk tolerance
- S&P 500 Index
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