The Beta is a measure that compares the volatility associated with a specific stock issue with the volatility of the Standard & Poor's 500 Stock Index.

Question

Quizplus · Accepted Answer

This is true. Beta measures the sensitivity of a stock's returns to market volatility, and the S&P 500 is often used as a proxy for the overall market. So a beta of 1 indicates that the stock is as volatile as the market, while a beta greater than 1 indicates higher volatility and a beta lower than 1 indicates lower volatility than the market.

The Beta Is a Measure That Compares the Volatility Associated