Once an investor understands how risk and volatility work, they can use it as a tool in evaluating any given investment. We all have a different tolerance for risk. What may be completely acceptable to you may feel uncomfortable to me and keep me from getting a good night's sleep. We do that by looking at its Beta. You're right-it is Greek.
Beta is the second letter in the Greek alphabet.
In investing, Beta has a special meaning. Beta measures a stock's risk by comparing a stock's price movements to the swings in the market. A stock that swings more wildly than the market will have a higher Beta than one that doesn't. Therefore, the wilder stock is riskier than the tame stock. When you see a stock with a high Beta, you know it's a wild thing.