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How much a stock or portfolio tends to move when the whole market moves. The S&P 500 has a beta of 1. A beta of 1.5 has moved about 1.5% for each 1% move in the market, up or down. Beta is measured on past prices and changes over time.
Example:
A portfolio with beta 1.2 fell about 12% in the past when the S&P 500 fell 10%