Beta measures a stock's volatility relative to the market. A beta of 1.0 means the stock moves with the market. A beta greater than 1.0 indicates higher volatility (more risk), while below 1.0 indicates lower volatility. Defensive sectors like utilities typically have low beta, while tech stocks often have high beta.
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Quick Reference
Category
risk
Difficulty
Beginner
Reading Time
1 min
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Where You'll See This
This concept appears throughout stock detail pages and financial data.