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Beta Riskiness of individual stock & of a portfolio stock?

Beta Riskiness of individual stock & of a portfolio stock?

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The beta of an individual stock is riskiness associated with that stock. The volatility of a stock. Owning only one stock can be highly risky since any bad news can affect the stock price and your returns very badly.

However when you own a portfolio of stocks, the return expectations can be higher. The bad returns of one stock can be offset with the good returns of the other. Therefore, its better to have a portfolio of stocks rather than an individual stock.

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