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Beta is a measure of a stock's systematic risk, or volatility, compared to the market as a whole. The 5-year average beta for Kroger stock
Beta is a measure of a stock's systematic risk, or volatility, compared to the market as a whole. The 5-year average beta for Kroger stock is 0.52 (source: yahoo.finance). What does this tell us about the volatility or riskiness of Kroger stock? 1. The stock is theoretically 48% more volatile than the market. II. The security is theoretically 48% less volatile than the market. III. Including this stock in a portfolio makes it less risky than the same portfolio without the stock. IV. Low-beta stocks pose less risk but also lower returns. O I, II, III, and IV
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