A stock's anticipated movement in relation to changes in the entire market is measured by the concept of beta.
An investment security's (i.e., a stock's) beta () is a gauge of its return volatility in relation to the total market. It serves as a risk indicator and is crucial to the Capm Model (CAPM). Higher beta means greater risk and higher expected profits for the company.
A fund's price is thought to be less erratic than the market as a whole if its beta value is less than 1. A beta of 1 means the stock moves in step with the market as a whole.
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