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Calculation Download historical security prices for the asset whose beta you want to measure.
Download historical security prices for the comparison benchmark.
Calculate the percent change period to period for both the asset and the benchmark. If using daily data
Find the Variance of the asset using =VAR.S(all the percent changes of the asset).
Find the Covariance of asset to the benchmark using =COVARIANCE.S(all the percent changes of the as
Correlation of stock and Market* ( standard deviation of stock / standar deviation of Market)
capm
return on portfolio
r risk. Expressed as a numeral, it shows how the variance of an asset – anything from an
t asset and the stock market (or whatever benchmark is being used) as a whole.
benchmark. If using daily data, it's each day; weekly data, each week, etc.
the percent changes of the asset, all the percent changes of the benchmark).
eviation of Market)
Day Close Daily Returns
3-Oct-16 8.35
4-Oct-16 8.61 3.11%
5-Oct-16 8.38 -2.67%
6-Oct-16 8.14 -2.86%
7-Oct-16 8 -1.72%
10-Oct-16 7.88 -1.50%
13-Oct-16 7.13 -9.52%
14-Oct-16 8.13 14.03%
17-Oct-16 8.2 0.86%