GENERAL KNOWLEDGE

Detailed explanation-1: -Beta is a measure of a stock’s volatility in relation to the overall market. By definition, the market, such as the S&P 500 Index, has a beta of 1.0, and individual stocks are ranked according to how much they deviate from the market. A stock that swings more than the market over time has a beta above 1.0.

Detailed explanation-2: -The VIX-also known as the “fear index”-is the most well-known measure of stock market volatility. It gauges investors’ expectations about the movement of stock prices over the next 30 days based on S&P 500 options trading.

Detailed explanation-3: -Beta indicates how volatile a stock’s price is in comparison to the overall stock market. A beta greater than 1 indicates a stock’s price swings more wildly (i.e., more volatile) than the overall market. A beta of less than 1 indicates that a stock’s price is less volatile than the overall market.

Detailed explanation-4: -Alpha is a way to measure excess return, while beta is used to measure the volatility, or risk, of an asset. Beta might also be referred to as the return you can earn by passively owning the market. You can’t earn alpha by investing in a benchmark index fund.