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Beta

Last Updated: November 14, 2006 Related resource areas: Personal Finance

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A measure of the risk of a security in comparison to the market as a whole. A Beta of 1 means the price of the security will move with the market.

  • Stocks that have a beta greater than 1 have greater price volatility than the overall market and are more risky.
  • Stocks with a beta of 1 fluctuate in price at the same rate as the market.
  • Stocks with a beta of less than 1 have less price volatility than the market and are less risky.

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personal finance, glossary, financial security: saving and investing

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