- A portfolio that has a beta of 1 should increase 10% when market prices increase 10%.
- A fund with a beta of 1.10 is expected to perform 10% better than the market in a rising market, but 10% worse in a declining market.
- A portfolio with a beta of less than 1.0 indicates that it is less volatile than the market or index.
A fund with a beta of 0.7 has experienced gains and losses that are 70% of the benchmark's changes. A beta of 1.3 means the total return is likely to move up or down 30% more than the index. A fund with a 1.0 beta is expected to move in sync with the index.