The beta is an index that compares the risk associated with a specific stock issue with the risk of the stock market in general.

Question

Quizplus · Accepted Answer

The beta measures the volatility of a stock relative to the overall market. A beta of 1 indicates that the stock's price will move in line with the market, while a beta greater than 1 suggests that the stock is more volatile than the market and a beta less than 1 indicates that the stock is less volatile than the market. Therefore, the statement is true.

The Beta Is an Index That Compares the Risk Associated