You've learned that it's important to understand the risk of any investment before diving in.

But how can you understand how risky a stock is? 🤔

One number that helps you figure that out is Beta! 🔮

Beta is a measure of a stock's volatility compared to the rest of the market 📊

As a quick reminder, 💡volatility = how much a stock’s price goes up and down, which affects how risky and unpredictable it is ✍️

Stock prices are like roller coasters and change all the time 🎢

Beta helps you understand which stocks change a lot and which ones change less.

However, volatility is only one factor behind an investments' risk, and there are many other factors that affect the risk of your investment like interest rates, inflation and politics 🧠

In this journey though we'll focus on Beta: in the next lessons, we'll go over how to calculate Beta, as well as how to interpret it as an investor!

So now you know that Beta is a stock's volatility compared to the rest of the market!