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Beta measures security volatility relative to market: β > 1 more volatile than market, β < 1 less volatile, β = 1 matches market.

Водич корак по корак

1. 1Calculate historical returns vs. market index
2. 2Compute covariance of returns
3. 3Divide by market variance

Worked Examples

Common Mistakes to Avoid

• ✕Assuming high β always risky (opportunity matters)
• ✕Using short lookback periods

Frequently Asked Questions