Beta-Formula-Excel-Template
Beta-Formula-Excel-Template
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Benchmark Percentage of Percentage of Change
Date Assets Price
Price Change in Asset in Benchmark
Beta 0.2471
Suppose an investor wants to invest in a company, he wants to calculate Beta
of the company and compare it with S&P 500 EFT Trust correlation between
two is 0.62, the standard deviation of returns of the company is 22% and standard
deviation of returns of S&P is 30%.
Beta 0.45
A company gave risk free return of 5%, the stock rate of return is 10%
and the market rate of return is 12% now we will calculate Beta for same.
Beta 0.71
Return on risk taken on Market is calculated using below formula
Return on risk taken on Market = Market Rate of Return – Risk Free Return
Kj = Krf + bj ( Km – Krf )