Calculating beta using the covariance/variance formula is probably the most common method of calculating the beta of a stock. This formula takes the covariance of the return of the market and the ...

Beta, represented by the Greek lowercase letter β, is also used in the formula for the weighted ... Step 2: Calculate the covariance between Apple and the S&P 500. Covariance measures the stock ...

With the results of the regression, the coefficient of the explanatory variable is the beta (the covariance divided by variance). Using Excel, pick a cell and enter the formula: "SLOPE" which ...

Or as a formula: Let’s break down ... time periods in calculating returns. Though beta always involves the measurement of variance and covariance over a period, there is no universal, agreed ...

To calculate beta, divide the covariance of the asset’s anticipated ... This model includes beta in the calculations. In the formula, the expected return is equal to the risk-free rate added ...

Covariance is a statistical measure of how two assets move in relation to each other. It provides diversification and reduces the overall volatility of a portfolio. A positive covariance indicates ...