A beta above 1 means the stock is more volatile, while a beta below 1 means it is less volatile. Calculating beta involves comparing the stock’s past price movements to market indices.

To calculate beta for a stock using this method, you first need to understand the following terms: Variance (σ2): The spread between numbers in a specific data set.

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Calculating Beta . It's simple to calculate the beta coefficient over a certain period. The beta coefficient needs a historical series of share prices for the company that is analyzed.

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.

Continue reading → The post How to Calculate the Beta of a Portfolio appeared first on SmartAsset Blog. Investors, whether beginner or seasoned professionals, all have a threshold for risk.

In finance, beta measures a stock’s volatility with respect to the overall market. It is used in many areas of financial analysis and investment, for example in the calculation of the Weighted ...

The article How to Calculate Beta From Volatility and Correlation originally appeared on Fool.com. Try any of our Foolish newsletter services free for 30 days.

Calculating Beta in Excel . It may seem redundant to calculate beta because it’s a widely used and publicly available metric. But there’s one reason to do it manually: the fact that different ...

Investors understand intuitively that some stocks are riskier than others. The capital asset pricing model attempts to quantify the common perception of risk using a term called beta. By ...