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Valuation

What Is Beta?

Definition and plain-English explanation of "Beta"

Beta — Valuation illustration

Beta measures how volatile a stock is relative to the overall market. A beta of 1.0 moves in line with the market; above 1.0 is more volatile (amplifying gains and losses); below 1.0 is less volatile. High-beta stocks like tech tend to swing more, while low-beta stocks like utilities are steadier — useful for managing portfolio risk.

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