Beta coefficient of a share or other asset formula
Financial acronyms
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Description of the Beta coefficient of a share or other asset formula
Formula for the calculation of the beta coefficient of a share or other asset.
Formula
\[ \beta_{a} = \frac {Cov({r_{a},r_{M}})} {Var({r_{M}})} \ \]
Symbols
\(r_{a}\ \)
Return of the share or other asset
\(r_{M}\ \)
Return of the market