Curious about your investment’s risk? Enter the covariance of the asset and market, and market variance, and our CAPM Beta Calculator will show you the beta.
CAPM Beta Calculator
CAPM Beta Calculator
Component | Description |
---|---|
Covariance of Asset Return and Market Return | The measure of how much the asset’s returns move with the market’s returns. |
Variance of Market Return | The measure of the market’s return volatility. |
Beta | The measure of an asset’s volatility relative to the market. |
Formula | Beta = Covariance of Asset Return and Market Return / Variance of Market Return |
Purpose | Used to measure the risk of an asset in relation to the market, aiding in portfolio management and risk assessment. |