What influences whether a stock that has risen 20% is considered to be performing well?

When assessing whether a stock that has risen 20% is performing well, the overall market performance and the stock's beta are significant factors to consider. The overall market performance provides context for the stock's price movement; a 20% increase might be impressive during a bull market, where most stocks are gaining, but less remarkable in a bear market where everything is declining.

Beta measures a stock's volatility in relation to the overall market. A stock with a high beta is expected to move more than the market average, meaning that a 20% increase could signify a strong performance if the market itself is not performing well. Conversely, if the stock has a low beta and the market is doing poorly, the stock's rise could be seen as a sign of strength.

In contrast, factors such as the company’s outstanding debts, the stock's trading volume, and the investor's personal beliefs do not provide a comprehensive view of the stock's relative performance compared to the market. While these elements are relevant to individual analysis, they do not directly correlate to the broader market context that can impact a stock's perceived performance. Thus, while a 20% rise might be impressive on its own, understanding it in relation to market performance and volatility is crucial for