Values of Beta

Are you ready to learn the ins and outs of Beta? 🤩

Let’s finally learn how to use Beta when making investment decisions 💰

Let's look at two example stocks. 📊

Stock A has a Beta of 0.5 and Stock B has a Beta of 1.5. 🤔

This means that Stock A is less volatile than the market and Stock B is more volatile. ⚖️

Want to know how we interpreted that? ✋🤔

Here’s the formula for understanding beta ➡️

If Beta = 1️⃣ the stock moves with the market

If Beta < 1️⃣, the stock is less volatile than the market

If Beta > 1️⃣, the stock is more volatile than the market

Now you understand the basics of Beta! 🤗

Beta is a measure of a stock's volatility compared to the market and can help you understand the risk and potential reward of a stock 🤑