BETA
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Beta. No, we are not talking about fraternities, vitamins or brain waves in this section. Here, beta is a measurement of relative market risk, also called volatility. Stocks are volatile by nature. There is always the possibility that a stock will lose some of its value and that the investor will lose money. But volatility also makes it possible for investors to make a great deal of money -- if they make the right choices. Investors can use beta to compare a stock's market risk to that of other stocks. In this tutorial, you will learn:

• What Is Beta?
• BETA HELPS INVESTORS DESIGN SUITABLE PORTFOLIOS
• GETTING BETA STATISTICS
• SUMMARY OF BETA

Let us begin by taking a closer look at beta. What is beta, anyway?