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Beta Explained: What It Is and How to Calculate It

Valutico

In the world of finance and investing, the concept of beta plays a vital role in assessing an investment’s risk and volatility. Whether you’re a seasoned investor or new to the market, understanding beta can empower you to make informed decisions. What is beta and how do you calculate beta?

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What is Modern Portfolio Theory and Portfolio Risk?

Andrew Stolz

The portfolio return variance is calculated by multiplying the squared weight of each asset by its variance and adding two times the weight of each asset multiplied by the covariance of the asset pair. Beta is the risk statistic used to compare the portfolio’s exposure to systematic risk to that of the market. which equals 0.25.

Beta 52