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Saving, Managing Debt, and Budgeting

Beta

Why do stocks and mutual funds have different betas?

Investments with betas less than zero will move in the opposite direction of the market. Investments with betas of 1.0 will move in the same direction as the market. Investments with betas of 1.0 may also be a major contributor to the benchmark itself. And investments with betas above 1.0 will be more volatile, and may be more affected by minute-by-minute news and market trading activity.



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