What is Beta?
Another important stock market basics rule is to understand the importance of beta averages on the stocks you buy. Many don’t know what beta is in regards to how it effects the market. However, it’s very important that you know, especially if risk is an important factor in your stock decisions. So any number below 1 is thought of very low risk. The number 1 is though of neutral. And any number above is though of high risk.
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