Can beta of a stock be zero?

Nevertheless, investors must exercise caution in relying solely on the Beta value. By considering a broader range of factors, they can gain a more comprehensive understanding of a stock's potential risks and rewards.

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The Beta value, a metric often utilized by investors, provides insight into a stock's correlation with the broader market. Specifically, a Beta of zero signifies a lack of direct relationship between the stock's performance and that of the market.

Despite this observation, it is crucial to acknowledge that the stock price movement is influenced by a myriad of factors beyond just the Beta value. These factors operate at various levels, from macroeconomic trends to company-specific events.

Among the multitude of determinants, the Beta value remains a prominent and historically well-established indicator for investors. It offers a quantitative measure of a stock's potential volatility relative to the market, allowing for more informed decision-making.