Your manager gives you a task of evaluating the performance of a particular stock by estimating stock's beta. A stock's (or portfolios) (beta) is a measure of the volatility of that stock relative to the volatility of the market therefore, the market has a equal to one. For individual securities, can take on any value, negative or positive Some basic facts about p: If an individual security has B-1, then that security tends to move in line with the market. IfB-0 the returns on the security are uncorrelated with returns of the market. If 0 1 the security tends to move in the same direction as the market,but is more volatile than the market. IfB