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Beta in Investing Is a Slope, Not a Risk Score
Investing9 min

Beta in Investing Is a Slope, Not a Risk Score

Beta is the slope of a regression of a stock's returns against the market's. That's the whole definition. It says nothing about how risky the stock is, and once you put R-squared next to it, a 0.5-beta stock can be more volatile than a 1.8-beta one.

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