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Beta Coefficient
Posted By: TradersLog
The Beta Coefficient in terms of finance and investing is a measure of the systematic risk of a stock or portfolio. It quantifies relative volatility in relation to the overall market, which is defined as having a beta of 1.0.
A security or portfolio with a Beta value less than 1.0 indicates a lower degree of volatility than the market. A Beta of greater than 1.0 reflects higher volatility than the market.
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