USE BETA TO MEASURE RISK

Risk is part of investing. You cannot avoid it; you can only hope to minimize it. The fundamental measure of relative market risk in investing is beta. Now that you have completed this tutorial, you should have a good understanding of beta, its importance, where to find it, and how to compare betas to determine the relative risk of a given investment.

Beta is used frequently to determine expected returns of individual securities. You can learn more about risks and returns in our other tutorials in the Encyclopedia.