hxyume / Getty Images A stock's beta indicates how volatile its price is compared to other stocks. And that is a clue to the degree of risk you're taking in buying that stock. In short ...
Beta can help give investors an idea of the risk in a given stock, and it’s a useful, if incomplete, way of doing so. Beta values can shift over time because they’re tied to market fluctuations.
High alpha and low beta indicate skilled management and lower risk, beneficial for cautious investors. Key findings are powered by ChatGPT and based solely off the content from this article.