In this article, we are considering the S&P 500 as the market. If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if ...
Conversely, a beta of less than 1 indicates that the stock is less volatile. This remains true as long as beta remains positive, or between 0 and 1. As an example, a beta of -2 is less than zero ...
An asset with a beta of 1 implies the stock will move perfectly in line with the market. A stock with a beta of 0.5 is a low beta; if the market does 10%, it could return 5%. A stock with a beta ...
In this article, we are considering the S&P 500 as the market. If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if ...