Explanation

Beta is a measure of a stock’s volatility in relation to the overall market. It indicates how much a stock’s price is expected to move relative to movements in the market. A beta greater than 1 means the stock is more volatile than the market, while a beta less than 1 means it is less volatile. Here is a brief explanation of the other options: A. Alpha: This measures the excess return of an investment relative to the return of a benchmark index. It indicates the performance of a stock or portfolio in excess of the market. C. Variance: This measures the dispersion of a set of returns for a stock or portfolio. While it indicates the volatility of returns, it is not as commonly used specifically for stock market risk as beta. D. Market relevance: This term is not a standard financial metric used to measure risk.