Beta (finance) (source code)

= Beta (finance)
{wiki=Beta_(finance)}

In finance, **beta** is a measure of a stock's volatility in relation to the overall market. It is a key component of the Capital Asset Pricing Model (CAPM), which helps determine an investment's expected return based on its risk relative to that of the market. Here’s how beta is interpreted: - **Beta = 1**: The stock's price moves with the market.