Beta Equation (Stocks)

Beta Equation (Stocks) The calculation of beta in stocks is done as follows: [(n) (sum of (xy)) ]-[(sum of x) (sum of y)] [(n) (sum of (xx)) ]-[(sum of x) (sum of x)] Here: n = # of observations (24-60 months) x = return rate for the S&P 500 Index y = return rate for … [Read more...]