
LINE B
Line B, or the B-value in finance, measures how much a stock’s price moves in relation to the overall market. If the market goes up or down by 1%, Line B indicates how much the stock is expected to change in response. A B-value greater than 1 suggests the stock is more volatile than the market, possibly rising quickly in bullish times and falling sharply during downturns. Conversely, a B-value less than 1 indicates lower volatility, meaning the stock tends to move less than the market. This helps investors understand the stock’s risk profile relative to market movements.