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In finance allah shmoop what is volatility beta this thing

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that's the symbol for volatility on the street we mean

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the wall one not the mean one and it is

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so commonly used that the in crowd members just say

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beta when they're referring to volatility unless they're from tennessee

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in which case they say you ve all y'all all

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right so here's a siri's of stock prices stamped each

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day that has lo ve all or low beta and

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here's a siri's that has high beta dead man's pulse

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versus rocky mountains Well what makes a stock volatile uncertainty

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Think about it this way If everyone knew for sure

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what a given stocks earnings would be for the next

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ten years quarter by quarter and they also knew what

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the overall markets average earnings would be in a few

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other things like revenue growth and world conditions and we're

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going to be war inflation there wouldn't be a lot

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of guesswork The quote right unquote price today would be

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thirty two dollars eighty three cents and the quote right

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unquote rate of compounding would be eight percent in the

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stock would slowly go up but this rate but in

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non disney land riel life well nobody really knows much

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of anything So stockcharts look like this and nerve endings

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of wall street traders look like this Neither of them 00:01:19.771 --> [endTime] looked much like this chart So that's all you

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