Beta

Beta measures how much a stock moves relative to the broad market (e.g. S&P 500 or DAX). • Beta = 1 → on average moves like the market. • Beta = 1.5 → swings 50% more (aggressive). • Beta = 0.5 → swings half as much (defensive). Watch out: Beta is calculated from past data and only holds while the business doesn't fundamentally change. Highly-valued growth firms often have beta > 1, utilities and consumer staples often < 1.