QUESTION

GS

Hard

Economy

Prelims 2023

In the context of finance, the term 'beta' refers to the

Select an option to attempt

Explanation

  • The beta value of a stock measures how much its price moves compared to the overall market:

  • Beta > 1: Stock is more volatile than the market (moves more).

  • Beta < 1: Stock is less volatile than the market (moves less).

  • Beta = 1: Stock moves in line with the market.

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