« Back to Glossary Index
Beta is a measure of the volatility of an investment in relation to the overall market. It is often used to evaluate the risk of an individual security or portfolio compared to the broader market.
A beta of 1.0 indicates that the investment moves in line with the market, while a beta greater than 1.0 indicates higher volatility than the market, and a beta less than 1.0 indicates lower volatility than the market.
