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Beta

Sensitivity of a security's returns to market returns

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Beta

Sensitivity of a security's returns to market returns

Definition

Beta measures the volatility of a security or portfolio relative to the overall market. A beta of 1.0 indicates the security moves with the market. Beta > 1.0 means more volatile than the market, while beta < 1.0 means less volatile. Beta is calculated using regression analysis.

Related Topics

#volatility #market sensitivity #regression #systematic risk

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Category: Technical

Technical analysis focuses on price patterns, chart analysis, and mathematical indicators to predict future price movements.

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