Beta coefficient of a share or other asset formula
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