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
Recent Mentions on Fool.com
- 3 Up-and-Coming Restaurant Stocks to Watch
- Should Bank of America Spin Off Merrill Lynch?
- SanDisk Corp. Stock Crashes on Guidance Cut
- Should Investors Toss in the Towel on Amarin Corp Plc?
- Why Investors Don't Trust Oil to Rebound
- Why 1 Wall Street Firm Believes Twitter Inc. Might Be a "Tweet" Bit Overdone