What does Value Line beta mean?

Beta. A relative measure of the historical sensitivity of the stock’s price to overall fluctuations in the New York Stock Exchange Composite Index. A Beta of 1.50 indicates a stock tends to rise (or fall) 50% more than the New York Stock Exchange Composite Index.

What does a beta of 1.25 mean?

A beta greater than 1 indicates a stock’s price swings more wildly (i.e., more volatile) than the overall market. A beta of less than 1 indicates that a stock’s price is less volatile than the overall market.

Is 1.5 A high beta?

A high beta (greater than 1.0) indicates moderate or high price volatility. A beta of 1.5 forecasts a 1.5% change in the return on an asset for every 1% change in the return on the market.

What is a good portfolio beta?

A beta value that is less than 1.0 means that the security is theoretically less volatile than the market. Including this stock in a portfolio makes it less risky than the same portfolio without the stock.

What is a good beta in investing?

Stocks with a value greater than 1 are more volatile than the market (meaning they will generally go up more than the market goes up, and go down more than the market goes down). Stocks with a beta of less than 1 have a smoother ride as their moves are more muted than the market’s.

What is a good beta for a stock portfolio?

What is a safe beta for stocks?

What is a good beta number?

Key Takeaways. Beta is a concept that measures the expected move in a stock relative to movements in the overall market. A beta greater than 1.0 suggests that the stock is more volatile than the broader market, and a beta less than 1.0 indicates a stock with lower volatility.

Is a beta of 1.2 high?

A beta that is greater than 1.0 indicates that the security’s price is theoretically more volatile than the market. For example, if a stock’s beta is 1.2, it is assumed to be 20% more volatile than the market. Technology stocks and small cap stocks tend to have higher betas than the market benchmark.