Beta
When used to indicate software status, it refers to an early test version of a program. Beta versions are released for users to test and for the team to get feedback.
When used as an indication of market volatility, it measures the asset's volatility in comparison to that of the market. If beta is less than one, the asset is less volatile than the market. If it is greater than one, the asset is more volatile than the market.
In a sentence
The wallet entered beta so users could test new features before the full release.
- The wallet entered beta so users could test new features before the full release.
- Because the software was still in beta, the team expected bugs and user feedback.
- A token with a beta above one moved more sharply than the broader market.
- The analyst calculated beta to compare the asset’s volatility with its benchmark.
- The portfolio manager used beta to estimate how sensitive the investment was to market swings.
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