The answer is when the beta value is 1, it means that the security's price typically moves with the market.
Beta is said to be a systematic or market risk of the portfolio. Beta for the overall market is considered to be 1.
A beta greater than 1 means there is a higher systematic risk than the overall market and vice versa. A portfolio with beta of 1 is highly diversified.
The volatility of a stock is quantified by its beta, or how much it changes in price relative to the entire stock market.
In other words, it provides a sense of the stock's risk in relation to the market's overall risk. Beta is often used to contrast the market risk of a stock with that of other stocks. The Greek letter ß is used by analysts to denote beta.
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