Beta refers to the volatility of a particular stock compared against the volatility of the entire stock market or, in practice, a representative index of that market, such as the Standard and Poor's (S&P) 500. Beta is an indicator of how risky a particular stock is and is used to evaluate its expected rate of return. Beta is one of the fundamentals stock analysts consider when choosing stocks for their portfolios, along with price-to-earnings ratio, shareholder's equity, debt-to-equity ratio and other factors. Here's how to calculate beta and use beta to figure an expected rate of return.

Steps
Calculating Beta for a Stock
1. -------------------------------------------------
1
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Find the risk-free rate. This is the rate of return an investor could expect on an investment in which his or her money is not at risk, such as U.S. Treasury Bills for investments in U.S. dollars and German Government Bills for investments that trade in euros. This figure is normally expressed as a percentage. -------------------------------------------------

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2. -------------------------------------------------
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Determine the respective rates of return for the stock and for the market or representative index. These figures are also expressed as percentages. Usually, the rates of return are figured over several months. * Either or both of these values may be negative, meaning that investing in the stock or the market (index) as a whole would mean a loss against the investment during the period. If only 1 of the 2 rates is negative, the beta will be negative. 3....

...I need to calculatebeta of the company's stock?
eg: returns for co. are -5%, 5%, 8%, 15% and 10% over 5 years.
the returns for stock exchange are -12%, 1%, 6% 10% and 5% for the same 5 years.
How to compute the beta of the company's stock?
* 5 years ago
* Report Abuse
anilwyd
Best Answer - Chosen by Asker
Bete is measure of Risk.
Year 1 Beta = -5/12 = 0.42
Year 2 Beta = 5/1 = 5
Year 3...

...monthly payment using the PMT function in Excel and then prepare an amortization table. Fully amortize the loan by going out to the last payment.
(b) Calculate both total $ payments for the stream of payments, the stream of principal payments, and the stream of interest payments. Also calculate the present value of these 3 streams. [To calculate the present value of interest and principal payments, you will need to use the NPV function, rather...

...How to Calculate Preferred Dividends
Preferred stock (or preference shares) is a special class of stock that pays a fixed dividend set at the time of issuance. Also, preferred dividends must be paid before common stock dividends. To calculate the dividends for preferred stocks, you need to multiply the par value of the shares by the dividend percentage.
Example 1:
If the dividend percentage is 8 percent and the preferred stock was issued at $20 per...

...21st century and imagine that you have been working outside in the heat all day and you feel very dehydrated and need to be rushed to the hospital. Well, step into the world of a nurse and learn how to do this difficult task. First, the calibration of the drip is necessary, the volume is necessary, and how many minutes are necessary in what you are trying to find. You, the patient, are getting a certain amount of saline solution through the IV tubing. There will be...

...How to Calculate Sales
Per Square Foot
Retailers use this
data to examine differences in same-
store sales over time. Corporate
analysts use this data to compare
sales in different store locations of a
retail chain, regardles of store size.
This comparison can aid in deciding
which locations to expand and which
to contract. In addition. Sales per
square foot is also by commercial
property owners used to determine
to determine the appropriate level of...

...
BETA MANAGEMENT COMPANY
Q1. Calculate the variability (standard deviation) of the stock returns of California REIT and Brown Group during the past 2 years. How variable are they compared with Vanguard Index 500 Trust? Which stock appears to be riskiest?
The stock returns for each month are given in Table 1. Based on the monthly returns, the standard deviation or variability of each stock has been calculated. The standard deviation for California...

...Growth rates and how to calculate them.
Growth rates can be tricky to calculate and interpret and many people get confused. So here’s how to
get ahead of everyone.
Let’s start with a time series where we know the answer. In the example below, X starts at 100, grows
3%, then falls back again, then grows 3% again. So over the three years, it has grown from 100 to 103.
1
Year
2000
2001
2002
2003
Average
CAGR
2
3
4
X
Growth X
DlnX
100...

...How to calculate it ????
* A+ = 12
* A = 11.5
* A- =11
* B+ =10
* B = 9
* B- = 8
* C+ =7
* C = 6
* C- = 5
* D = 4
* F = FAIL :S
* U =Ungraded
* W=Withdrawal
GPA is the Grade Point Average
1 course = 3 credit hours
To calculate the GPA u add the grades of ur courses
and divide them by number of hours.
Example:
* English 1 A+
* Maths 1 A+
* Accounting 1 A...

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