What Does Beta >1.0 Indicate?

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When Beta is greater than 1.0, it indicates that the security is more risky than the market. Beta is a measure of a security's volatility in relation to the market as a whole. A beta of 1.0 means that the security's price will move in line with the market. A beta greater than 1.0 means that the security is more volatile than the market and will therefore experience larger price movements, both up and down, than the market.

For example, if a security has a beta of 1.5, it is expected to move 50% more than the market in either direction. So if the market moves up by 1%, the security is expected to move up by 1.5%. If the market moves down by 1%, the security is expected to move down by 1.5%.

Investors can use beta as a tool to determine the risk of a particular security. A security with a higher beta is considered to be riskier than a security with a lower beta because it has a higher potential for price movements. However, it's important to note that beta is not the only measure of risk and other factors such as the company's financial health and industry trends should also be taken into consideration.