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Glossary Mutual Fund / Term

Beta

Beta is used to measure the degree of risk or volatility associated with a fund, stock or portfolio as compared to the overall market or a particular benchmark.

The beta value of less than 1 = The fund or stock is less risky than the market.
The beta value of more than 1 = The fluctuations in the stock value is higher than the market.

For example, if the beta is 1.2 and the market moves by 10%, then the stock in question will move by 12%.

Permanent link Beta - Creation date 2020-05-23


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