A stock with a beta of 2.3 means that for every 1 percent change in the market overall, the stock tends to change by 2.3 percent in the same direction.

Name: A stock with a beta of 2.3 means that for every 1 percent change in the market overall, the stock tends to change by 2.3 percent in the same direction.
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Question

Quizplus · Accepted Answer

Beta measures a stock's volatility relative to the overall market; a beta of 2.3 indicates the stock is more volatile, moving 2.3% for every 1% market move.

A Stock with a Beta of 2