A measure of a stock's volatility relative to the overall market, where beta of 1 means the stock moves with the market, above 1 indicates higher volatility, and below 1 suggests lower volatility than the market.
From the Greek letter beta (β) used in statistical regression analysis to represent the slope coefficient. The term was popularized in modern portfolio theory in the 1960s by William Sharpe and others developing the Capital Asset Pricing Model.
Try Another Word