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Does Beta in statistics (as in hypothesis testing, normal distribution etc.) relate to the Beta in the CAPM formula in Finance? If it does, how
Does Beta in statistics (as in hypothesis testing, normal distribution etc.) relate to the Beta in the CAPM formula in Finance?
If it does, how so? I understand the two two concepts separately nut I am having a hard time connecting the two. I associate Beta used in the normal dist. with hypothesis testing, but I dont see how a regression in finance (Beta) would apply to the Beta in stats. Any help is appreciated. Thanks !
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