Discussion in 'Strategy Development' started by dice216, Aug 20, 2007.
what is the significance of a stock having a beta greater than 1? anybody?
It means that the stock is more volatile than the overall market.
For example, if a stock had a beta of 2, it would tend to move twice as much as the index. So, if the S&P 500 rose 5%, the stock with a beta of 2 would be expected to rise 10%. That goes for the downside as well.
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