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.
