Ch.10 · Risk Measures and Ratios · medium
What is 'beta' as a risk measure for mutual funds?
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EXPLANATION
Beta measures a fund's price movement relative to its benchmark. Beta = 1: fund moves in line with the market. Beta > 1: fund is more volatile than the market (amplifies market moves). Beta < 1: fund is less volatile than the market. Beta = 1.2 means when the market rises 10%, the fund typically rises 12%, and vice versa.
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