Please take a look at the picture below. It shows Tesla stock price over the last few months (Red Line) with S&P 500 index drawn as a candlestick chart. As you can see the price of TSLA stock was MANY MORE times more volatile than the price of S&P 500 index. However, many services (such as Yahoo! Finance) (Links to an external site.)report that TSLA's beta is less than 2.0 (1.69 to be precise). In other words, Yahoo! Finance reports that TSLA is less than twice as volatile as the market while you clearly see in the picture that it is 30-50 times more volatile than the market.

Question: Suppose that Yahoo! Finance is correct (and your eyes are also correct), how do you explain this discrepancy between the volatility visible on the chart and the relatively low beta given by the data providers such as Yahoo! Finance? 200-500 words

S&P 500 Index. 1DFXCM 02774.25 H2836.84 L2751.85 C2835.73 +61.48 (+2.22%) 3371.49 71 3372.20 180.00% Vol 20 1.371M 1.535M 160.00% EMA 21 close EMA 50 close VWAP Session hlc3 TSLA, CBOE BZX 149.04 140.00% 131.14% Am Mawy + 122.15% 100.00% TESLA 80.00% 60.00% 40.00% 20.00% SP 500 INDEX 17 -0.47% 02:12:00 -20.00% -40.00% -60.00% -80.00% Mar 17 Apr 16 Apr 20 May Jun 16 16 Aug Sep 16 Oct 16 Nov O S&P 500 Index. 1DFXCM 02774.25 H2836.84 L2751.85 C2835.73 +61.48 (+2.22%) 3371.49 71 3372.20 180.00% Vol 20 1.371M 1.535M 160.00% EMA 21 close EMA 50 close VWAP Session hlc3 TSLA, CBOE BZX 149.04 140.00% 131.14% Am Mawy + 122.15% 100.00% TESLA 80.00% 60.00% 40.00% 20.00% SP 500 INDEX 17 -0.47% 02:12:00 -20.00% -40.00% -60.00% -80.00% Mar 17 Apr 16 Apr 20 May Jun 16 16 Aug Sep 16 Oct 16 Nov O