Beautiful beta

Beautiful beta

Introduction

Beta

It is defined as a tool that is used to measure the volatility, or systematic risk of a particular security or a portfolio as compare to overall market. Beta is generally used in CAPM that is used to calculate the expected return and market return of portfolio comprises of different securities or of individual securities (Levy, 2011).

In addition to this, regression analysis is also used to calculate the value of Beta; further, this is also defined as the ability to determine the progression of security return as compare to fluctuation in market.

Capital Asset Pricing Model

Is generally described as the ...