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Technology Stocks : Dell Technologies Inc.
DELL 138.45-1.6%1:12 PM EST

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To: jhg_in_kc who wrote (57713)8/11/1998 5:59:00 PM
From: Lee Lichterman III   of 176387
 
Beta is the the volatility of the stock in relation to the market. In the simplest example, you own 3 stocks. They are all 100 dollars a share. The market drops or goes up 10%

The first stock has a beta of 1, it should drop or gain $10 a share

The second stock has a beta of .5, it should drop or rise $5

The third has a beta of 1.5, it will drop or rise $15

Traders want high betas to take advantage of the wild swings, conservative investors want low betas for predictability. Beta can be due to sector, outstanding share volume, float etc. Hope this helped.
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