Beta (β) is the second letter of the Greek alphabet used in finance to denote the volatility orsystematic riskof a security or portfolio compared to the market, usually the S&P 500 which has a beta of 1.0. Stocks with betas higher than 1.0 are interpreted as more volatile than the S&P ...
You can make almost anything sound smarter by adding Greek letters to it — and investing is no exception. When you strip away the fancy terminology, a stock’s beta (β) is simply a measure of how risky that stock is. Beta analysis can be a useful tool for building a balanced portfoli...