When analyzing a particular stock's performance (y) compared to the performance of a related benchmark segment of the stock market (x), the slope is a relative risk measurement. The slope depicts a fund's volatility against the benchmark. Many financial analysts calculate the slopes for stock funds using the S&P. 500 Index as the benchmark. This market model assumes that the rate of return of a stock (y) is linearly related to the rate of return (x) of the benchmark: y = Po + BIx + random effects where the intercept Bo and slope P1 are unknown population parameters estimated by the least squares intercept bo and slope b1. In this context the slope by is usually referred to as the beta coefficient of the stock. Beta is explained at most business-oriented web sites, see for example here. Interpretation of beta b1 = 1 means the stock's rate of return moves up and down in perfect harmony with the benchmark market. by > 1 means the stock's rate of return is more sensitive to changes in the level of the