[Verse 1] When stocks dance with the market's sway Some move fast and some move slow Beta tells us just which way Your investment's gonna go If the market jumps up ten percent Will your stock rise more or less? Beta is the measurement That helps predict success [Chorus] Beta shows the risk you take When the market starts to shake One means moving with the flow Higher means more highs and lows Beta, beta, tells the tale Risk and return on market scale Regression helps us find the way Using data day by day [Verse 2] Take your stock's returns each month Compare them to the S&P Plot the points and see the hunch There's a pattern you can see Draw a line through all those dots The slope will be your beta score Steeper lines mean bigger shots Flatter means much less in store [Chorus] Beta shows the risk you take When the market starts to shake One means moving with the flow Higher means more highs and lows Beta, beta, tells the tale Risk and return on market scale Regression helps us find the way Using data day by day [Bridge] Zero beta stays the same No matter what the market does One point five means bigger game One and half times all the buzz Defensive stocks have beta low Aggressive stocks have beta high Historical data helps us know Which stocks will touch the sky [Verse 3] Covariance with market moves Divided by the market's spread This formula helps to prove What the regression line has said Three to five years of data Makes the estimate more true Beta helps evaluate your Portfolio's risk profile too [Chorus] Beta shows the risk you take When the market starts to shake One means moving with the flow Higher means more highs and lows Beta, beta, tells the tale Risk and return on market scale Regression helps us find the way Using data day by day [Outro] When markets rise your beta shows How much your stock price grows When markets fall it tells you too Just how much risk you're going through
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