Neutral stock

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Neutral stock

A stock with a beta of 1.0.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Neutral Stock

A stock with volatility exactly the same as the wider market. This means that the stock's riskiness is quantified at the exact same rate as the wider market. This is expressed by stating that the stock as a beta of exactly 1. See also: Gamma neutral.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved