Finance
Beta is a measure of a stock's volatility in relation to the overall market, indicating how much the stock's price is expected to change in response to market movements. A beta greater than 1 means the stock is more volatile than the market, while a beta less than 1 indicates it is less volatile. This concept is critical for assessing risk and return in investment portfolios, understanding pricing models, evaluating cost of capital, and implementing risk management strategies.
congrats on reading the definition of Beta. now let's actually learn it.