Beta measures how much a stock's price tends to move relative to the market as a whole. A beta of 1 means the stock tends to move with the market; above 1 implies greater sensitivity (higher market-related volatility), and below 1 implies less sensitivity. Beta captures systematic risk, not company-specific risk, and is estimated from historical return correlations. For investors, beta helps set expectations for how a holding may react if the market rises or falls. This question asks for the correct interpretation of beta.