Beta

Beta (β) is a measure used primarily in finance to assess the volatility or risk of an investment compared to the overall market. A beta of 1 means the investment's price moves with the market; a beta greater than 1 indicates higher volatility and potential for larger gains or losses, while a beta less than 1 suggests lower volatility. For example, a stock with a beta of 1.5 may rise or fall 50% more than the market average. Understanding beta helps investors gauge the risk level associated with particular stocks or portfolios.