Stocks with high betas will have larger price gains and losses than those with low betas.

Question

Quizplus · Accepted Answer

A high beta indicates that the stock is more volatile and responsive to market movements. This means that when the market experiences gains, the stock with a high beta will likely see larger price gains than a stock with a low beta. Conversely, when the market experiences losses, the stock with a high beta will likely see larger price losses than a stock with a low beta.

Stocks with High Betas Will Have Larger Price Gains and Losses