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Beta is used in finance is a measurement of how a stock's price has moved in relation to the overall stock market prices in the

Beta is used in finance is a measurement of how a stock's price has moved in relation to the overall stock market prices in the past. If a given stock has a beta equal to [ Select ] ["0.5", "one", "two"] that means that the stock price moves in lockstep with the overall market or the average stock. On the other hand, if you have another stock and its beta is equal to [ Select ] ["one", "0.5", "two"] , well, this tells us that the stock price is twice as volatile as the overall market or the average stock. On the other hand, if you have a stock that's got a beta of 0.5 then that stock has half as much volatility as the overall stock market or the average stock price. Therefore, beta is theoretically the correct way to measure a stock's [ Select ] ["return", "riskiness"] .

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