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You can use the slope function on excel which takes a cell range representing the Y-Variable and another cell range representing the X-Variables. For instance the Y-Variable may be a column of excess returns for a stock and the X-Variable maybe the column of risk premia.
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How is beta determined for a stock?
You'll need a spreadsheet like Excel. Do the following. 1) Get percentage daily returns for the stock between two dates (I suggest every day for a year). You can get this historical data from Yahoo Finance 2) Pick a benchmark index 3) Get percentage daily returns for the index between the two dates as well 4) Calculate the covariance of the stock with respect to the index and divide by the variance of the stock [the two excel functions you'll need are covariance.p() and variance.p() ] Go to the related link below for a spreadsheet to do this.
How do you calculate beta in mutual funds?
Check out these websites: http://faculty.babson.edu/academic/Beta/CalculateBeta.htm http://www.money-zine.com/Investing/Stocks/Stock-Beta-and-Volatility/
The most commonly used greek letters in statistics?
I'll give you some common Greek symbols used in statistical analyses. I can't tell you which is the most common one given the enormous task of reviewing every statistics book. The Greek mu for mean, sigma for variance and rho for correlation are probably the first ones that one encounters in statistical analyses. Also, beta for beta distribution, gamma for gamma distribution, chi for chi-squared distribution. Alpha and beta are common as distribution parameters. In derivations, delta is common for differences of variables. Tau is common for a time variable. You will find more information in the related link.
What is the difference between Gamma and Beta burns?
"beta burns" are shallow surface burns
How do you convert a beta probability density function to a beta frequency distribution?
probability density distribution
How do you Calculate Stock Beta in Excel?
You need to use the variance and covariance functions in Excel 1. Calculate the covariance of the stock returns with respect to an index 2. Calculate the variance of the index 3. Divide the first number by the second. See the related link for a spreadsheet
What do you mean by the term Beta in investments?
Beta is a number that describes how the volatility of a stock varies with a nominated benchmark index. It's the covariance of the stock with respect to the index divided by the variance of the index. The related link contains more information
What is debt beta?
Beta of a debt is the ration of covariance of the debt return with the market return.If debts are traded then beta of the debt is estimated by regression.
How do you measure the risk of a single asset?
The total risk of a single asset is measured by the standard deviation of return on asset. Standard deviation is the square root of variance. To measure variance, you must have some distribution/ possibility of asset returns. However, the relevant risk of a single asset is the systematic risk, not the total risk. Systematic risk is the risk that cannot be diversified away in a portfolio. Systematic risk of an asset is measured by the Beta. Beta can be found using Regression (between market return and asset's return) or Covariance formula.
The CAPM implies that investors require a higher return to hold highly volatile securities?
The CAPM relates the expected return on a security to that of the overall market portfolio. A highly volatile security will have a high covariance with the market portfolio. Since beta equals the covariance of the security with the market portfolio divided by the variance of the market portfolio, the result is a high value of beta. When this high value of beta is plugged into the CAPM formula, all else not changed, the required return on the security (ra) is going to increase, implying investors require a higher return to hold a highly volatile security. t
How is beta determined for a stock?
You'll need a spreadsheet like Excel. Do the following. 1) Get percentage daily returns for the stock between two dates (I suggest every day for a year). You can get this historical data from Yahoo Finance 2) Pick a benchmark index 3) Get percentage daily returns for the index between the two dates as well 4) Calculate the covariance of the stock with respect to the index and divide by the variance of the stock [the two excel functions you'll need are covariance.p() and variance.p() ] Go to the related link below for a spreadsheet to do this.
What is the formula to calculate beta DC?
beta dc= ic/ib!!
How do you calculate a beta?
It is impossible to calculate a Betta. A Betta is a fish.
How do you calculate beta of debt?
Nice
How do you calculate Beta for a stock?
Using Excel: plot the benchmark returns against the stock returns. add a linear trendline and display the equation Beta is the slope of the trendline. Examine the spreadsheet in the related link for a worked example
How can you measure volatility using beta?
You can use Beta to measure market volatility because of beta is the elasticity of a stock change as a result of a change in the market. That is, Beta of a sotck is found by comparing the senstivity of a stock's return to the fluctuations in the market.Beta is found by dividing the product of the covwariances of the stock and market retun by the variance of the market.The bench marks of betas are as followed:a risk free investment such as a Tbill (that is guaranteed a return) will have a beta of 0.A portfolio with risk equivalent to the market has a beta of 1.Given those two bench mark, you can gauge at the volatility of the stock/investment by comparing its beta with those two extremes.
How do i Calculate base current from collector current and resistance?
Ib =Ic /beta beta is the gain factor of the amp.
