BETA

In finance, the beta (β or beta coefficient) of an investment indicates whether the investment is more or less volatile than the market as a whole. In general, a beta less than 1 indicates that the investment is less volatile than the market, while a beta more than 1 indicates that the investment is more volatile than the market. Volatility is measured as the fluctuation of the price around the mean: the standard deviation.

 

Author: theuniversityclubpodcast

Finance lecturer Former MD in large Investment Bank Podcast producer MBA Investor

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