What is beta in investing in financial terms

In financial terms, beta shows market exposure. Latest Nasdaq data reveals EV manufacturers averaging 1.75 beta, pointing to sizable movements on quarterly delivery reports. Electric aviation represents a small but developing corner of the transportation industry, Reuters reported. Only a handful of companies are currently developing and testing commercial aircraft powered by electricity. SmartAsset maintains strict editorial integrity . It doesn’t provide legal, tax, accounting or financial advice and isn’t a financial planner, broker, lawyer or tax adviser. Consult with your own advisers for guidance. Opinions, analyses, reviews or recommendations expressed in this post are only the author’s and for informational purposes. This post may contain links from advertisers, and we may receive compensation for marketing their products or services or if users purchase products or services. | Marketing Disclosure Beta highlights how stocks react to market turbulence. As per 2024 data, biotech shares average 1.2 beta—higher-than-market shifts driven by FDA approvals and clinical trial results.