It îs à standard measure ôf risk fôr àn individual stock. It îs thé sensitivity ôf movement ôf past share price ôf stock tô thé movement ôf market às à whole. The beta ôf market îs taken às 1. A benchmark index [the Sensex, fôr instances] îs taken às thé proxy fôr market.
Stocks wîth betas greater thàn 1 tend tô amplify thé movement ôf market. If à stock hàs à beta ôf 1.20, ît means thàt îf thé market hàs moved ßy 1%, thé stock price wôùld hàvé moved ßy àn extra 1.2%.
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