Final answer:
The beta of a stock measures how the stock price moves relative to the rest of the market, indicating its volatility in comparison to market movements.
Step-by-step explanation:
The beta of a stock is a measure used in finance to understand the volatility of a stock in comparison to the overall market. If the beta is 1, then the stock's price is expected to move with the market. If the beta is greater than 1, the stock is more volatile than the market, and if it's less than 1, it is less volatile.
Therefore, the correct selection is c. how the stock price moves relative to the rest of the market. This measurement is essential for investors looking to understand a stock’s risk profile in relation to the market. The beta of a stock measures how the stock price moves relative to the rest of the market. It helps investors assess the volatility or risk of a particular stock compared to the overall market. A high beta indicates that the stock is likely to move more dramatically in relation to market movements, while a low beta suggests a stock that is more stable.