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Memphis,TN
Posts: 232 since Sep 2010
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So I understand the basics of Beta, and it's use in comparing a Stock with " X " Beta to a benchmark, such as the S&P 500
What I don't quite understand though is .... What is a Stock with a " Extreme " Beta telling me exactly ?
For example :
Lets take 2 different stocks.... one has a +3 Beta and the other stock has a -2 Beta
how can I look to trade stocks that have Betas in the upper and lower " Extremes "
What exactly is this telling me ?
Thanks as always for any help and insight
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