Cryptocurrency Q&A What is beta stock price?

What is beta stock price?

Dario Dario Sat Aug 17 2024 | 7 answers 1808
Could you please explain to me what beta stock price is? I've heard it mentioned in financial discussions but I'm not entirely clear on its meaning. Is it related to the volatility of a stock? How does it differ from other measures of risk, such as alpha? And is it something that investors should consider when making investment decisions? What is beta stock price?

7 answers

Eleonora Eleonora Mon Aug 19 2024
A beta value of 1 indicates that the stock moves in perfect sync with the market, experiencing equal gains or losses during market upswings and downturns.

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Rosalia Rosalia Mon Aug 19 2024
Beta, a numerical metric, serves as a crucial tool in assessing the volatility of a stock in relation to broader market movements.

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Chiara Chiara Mon Aug 19 2024
It quantifies the degree to which an individual stock's price fluctuations align with those of the overall stock market.

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isabella_doe_socialworker isabella_doe_socialworker Mon Aug 19 2024
Essentially, beta measures the sensitivity or responsiveness of a security's price to shifts within the broader market indices.

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Ilaria Ilaria Sun Aug 18 2024
A beta greater than 1 suggests that the stock is more volatile than the market, amplifying market movements, both positively and negatively.

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