Question
Determine the beta for Stock A based on the following set of returns.Of course, the reliability of a beta calculated with only four data points
Determine the beta for Stock A based on the following set of returns.Of course, the reliability of a beta calculated with only four data points may be low.Interpret the beta that you have calculated.
Stock A Returns Market Returns
6.0% 5.0%
15.0% 12.5%
-4.2% -3.5%
9.0% 7.5%
I do not understand how to calculate a beta, if possible, an explanation and formulas would be amazing. Thank you!
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Investments An Introduction
Authors: Herbert B Mayo
9th Edition
324561385, 978-0324561388
