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Why stocks some stocks fall faster/rise faster than others? Understanding BETA (β)
By Dr Wealth  •  April 30, 2021
Have you ever wonder why some stocks seem to fall a more when the index is down as compared to others? Or why is it when an index is up say 1%, a stock can be rising more than 1%? With modern day technology, this can be numerically calculated through an indicator known as the Beta (β) of a stock. Beta refers to the volatility of a stock in response to the overall changes in the market. (Market being a benchmark index such as STI or S&P500) What is BETA (β)? Beta refers to the volatility of a stock in response to the overall changes in the market. It is measured as a single digit. (Usually 1 , 0.9 , 1.5 etc.) A stock with the beta of 1 would indicate that theoretically, the stock is as volatile as the market itself. If the stock has a beta measurement of 0.9...
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By Dr Wealth
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