High-beta stocks give high returns

High-Beta refers to the great relationship between the movement of a stock and the overall market. A high beta stock rises more than the market in bullish trend and slips when markets are down. The expert often concern over the advising investors put in money in high-beta stock.
A beta of 1 points out that the price of stock will move about as much as the market or index, while a beta of less than one shows that the stock price will be less volatile than the market.
Based on the past performance of the stock with a beta of 1.2 will be expected to rise 20% more than the index when the latter goes up and fall more on the way down.
The general observation amongst investors is they should find out exposure to high-beta stocks in a bull market and low-beta stocks when markets are expected to correct.

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