create a response: Reply from Benjamin Fahl

To start, the industry sector plays a large role in the beta of a stock. Stocks in different industries have different levels of risk one example of this would be technology stocks that often have higher betas because they are more volatile while utility stocks usually have lower betas because of their stability.

Next, the company size plays a large role in the betas of the stock. Larger companies tend to have lower betas because they are more stable and less affected by market fluctuations. In contrast, smaller companies often have higher betas because they're more sensitive to market changes.

Companies with a higher debt level tend to have higher betas because the debt increases the company's risk. Therefore, the financial leverage a company has plays a large role in the volatility of a stock, affecting the betas of the stock.

The overall market conditions also play a large role in a stock$$s beta. During times of economic uncertainty, even the most stable stocks might see an increased volatility therefore affecting their beta.