Beta coefficient of a share or other asset formula

Tags: equities fundamental analysis metric

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.

β_{a} = \frac{C o v (r_{a}, r_{M})}{V a r (r_{M})}

r_{a}

Return of the share or other asset

r_{M}

Return of the market