Beta is a measure of the volatility or risk of a security or a portfolio in comparison to the market as a whole. Beta of 1 means that security’s price will move along with the market. Beta of less than 1 means that the security will be less volatile than the market. Beta greater than 1 indicates that the security’s price will be more volatile than the market. For example, if a stock’s beta is 1.4, it’s theoretically 40% more volatile than the market i.e. if the market rises or falls by 10%, the stock will rise or fall 14% (1.4 x market).