I want to understand the potential risks associated with beta. Could you explain what the risks of beta are, especially in the context of investments or product testing?
7 answers
CryptoWizardry
Wed Oct 30 2024
Beta is a tool utilized by analysts to ascertain the risk associated with a stock.
CryptoChieftain
Wed Oct 30 2024
Stocks with a beta coefficient above 1.0 are classified as high-beta stocks.
Carlo
Wed Oct 30 2024
High-beta stocks are perceived to be more volatile and hence carry a higher degree of risk.
CryptoVisionary
Wed Oct 30 2024
Despite the inherent risk, high-beta stocks offer the potential for higher returns.
GangnamGlamourQueen
Tue Oct 29 2024
Conversely, stocks that exhibit a beta lower than 1.0 are designated as low-beta stocks.