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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