
High Beta Stocks
High Beta stocks are shares that exceed market returns but come with elevated risk. They earn the 'High Beta' label due to a Beta Coefficient significantly above 1, reflecting greater volatility compared to the market. This coefficient measures how a stock’s returns correlate with market movements. A high Beta signals amplified price swings, offering potential for substantial gains during uptrends but steeper losses in downturns. These stocks suit risk-tolerant investors seeking outsized returns, though the trade-off is increased exposure to market fluctuations.
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