What is the meaning of Beta coefficient?

Beta coefficient is a measure of a stock's volatility relative to the overall stock market. The beta coefficient of the S&P 500 is 1. Any stock that is more volatile than the market as a whole has a beta value higher than 1. If the beta coefficient is less than 1, the security is considered to be less risky than the market.

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APABarry Goldsmith. (2010). beta coefficient. Retrieved September 21, 2026, from http://smartdefine.org/beta_coefficient/definitions/1148569
ChicagoBarry Goldsmith. 2010. "beta coefficient" http://smartdefine.org/beta_coefficient/definitions/1148569 (accessed September 21, 2026).
HarvardBarry Goldsmith 2010, beta coefficient, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/beta_coefficient/definitions/1148569>.
MLABarry Goldsmith. "beta coefficient" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/beta_coefficient/definitions/1148569>