Beta represents the average movement of a company's stock returns in response to a movement in the market's returns.

Question

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Beta is a measure of systematic risk that indicates the average movement of a company's stock returns in response to a movement in the market's returns. A beta of 1 indicates that the stock's price will move with the market, while a beta greater than 1 indicates that the stock's price is more volatile than the market, and a beta less than 1 indicates that the stock's price is less volatile than the market.

Beta Represents the Average Movement of a Company's Stock Returns