How to Calculate Beta To calculate the beta of a stock, you need historical price data for both the stock and the market index.

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, ...

Portfolio beta is the measure of an entire portfolio’s sensitivity to market changes while stock beta is just a snapshot of an individual stock’s volatility.

Each month, I provide an update to my four dividend growth model portfolios that includes portfolio beta and other volatility-adjusted metrics, such as the ...

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.

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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 ...