BETA EQUATION


Meaning of BETA EQUATION in English

The beta of a fund is determined as follows: Regress excess returns of stock y on excess returns of the market. The slope coefficient is beta. Define n as number of observation numbers. Beta=

[(n) (sum of (xy)) ]-[ (sum of x) (sum of y)]/

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.