What Is the Difference between High Beta and Low Beta in Stocks?


The difference between high beta and low beta in stocks lies in the fact that, high beta stocks are assumed to be more risky in comparison to lower beta stocks.
1 Additional Answer
The difference between high Beta and low beta in stocks is that high beta stocks are expected to be more risky but are the same ones that will have higher returns while low beta stocks have less risk hence lower returns. Beta can be described as the measure of volatility of stock in conjunction with the market.
Q&A Related to "What Is the Difference between High Beta and..."
The stock market is inherently risky, driven largely by speculation and assumptions about the future. In general, the riskier a stock, the greater the return an investor hopes to
a high beta stock has a higher degree of volatility compared to the broader market. so if a stock has high beta, it will rise more and fall more compared to market.
There are many other factors involved in achieving high returns other than Beta. These include - Technical Analysis - Other fundamental analysis variables - The condition of the broad
DJIA 2007 high: 14,164. 2007 low:
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