I'm considering investing in stocks, but I'm not sure about the risk involved. I've heard that high beta stocks might be more risky. Is this true? I want to understand the relationship between beta and risk in stock investing.
6 answers
Matteo
Wed Oct 30 2024
A beta score above 1 signifies that the stock exhibits higher volatility compared to the overall market.
Chiara
Wed Oct 30 2024
Beta serves as a crucial indicator for investors to gauge the systematic risk associated with a particular stock.
BonsaiLife
Wed Oct 30 2024
It provides insights into how a stock is likely to behave in response to fluctuations in the market.
DigitalDuke
Tue Oct 29 2024
This means that the stock's price movements are more exaggerated in either direction, either rising more or falling more sharply than the market.
Lorenzo
Tue Oct 29 2024
Conversely, a beta score below 1 implies that the stock is less volatile than the market.