Query: What Does a Stock's Beta Tell You?
Context: The Beta of a stock indicates its relative volatility compared to the broader equity market, as measured by the S&PO 500 (which has a beta of 1.0). A beta greater than one would indicate that the stock will go up more (in percentage terms) than the index when the index goes up, but also fall more than the index when it declines. A beta of less than one would suggest more muted movements relative to the index.