A stock's beta is calculated using the covariance of the stock's returns with the market returns divided by the variance of the market's returns.

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (2)

• stocks concept
• variance concept