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Finally, calculate the variance of the index (derived from the index daily price changes to show how they are distributed around the average), and divide the covariance by the variance.

The capital asset pricing model uses beta to describe how the returns of a given stock or portfolio stocks will compare to the returns of the overall market. The statistical definition of beta is ...

What beta is The capital asset pricing model uses beta to describe how the returns of a given stock or portfolio stocks will compare to the returns of the overall market. The statistical ...

Beta is a way to quantify a stock’s systematic risk. In simple terms, systematic risk refers to investment risk related to the movement of the entire market. Beta can help you answer questions like, ...

Learn how to calculate the beta of an investment using Microsoft Excel.

Try calculating dual-beta for a company whose dual-beta I have examined in one of my articles, and compare to the results found there. If they match, you have successfully emulated my calculation.