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Kiplinger
Kiplinger
Business
Coryanne Hicks

How To Use Beta in Investing

The word "beta" written out on wooden blocks.

Investing can be a lot like jumping on a trampoline. One minute you're up; the next you're down. The whole experience can be downright exhausting. Wouldn't it be great if you could anticipate just how much bouncing a stock would do before you purchased it?

It turns out you can – at least theoretically – thanks to a statistical measurement known as beta.

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