Beta

Beta is a measure of the volatility, or risk, of an investment. It is used by investors to decide how much risk they are taking when they choose to invest in a particular investment. Beta measures how an investment moves compared to the overall market. A beta of 1.0 means that the investment moves with the market, while a beta of 2.0 means that it moves twice as much as the market. If an investment has a beta of 0.5, it will move half as much as the market.