(And if it does, what are you going to do about it?)
Financial analysts use a variety of mathematical metrics to evaluate the performance of
individual stocks and indexes. One of these terms of evaluation is “beta,” the measure of a stock’s volatility in relation to a broader benchmark, usually an index. The higher the beta, the greater the volatility. Applying the concept to other areas of finance, economists are finding that many American households have “high beta” incomes, and this fluctuation is having a huge impact on personal finances as well as the national economy.
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