Calculate The Beta Of A Portfolio In Excel - The Excel Hub

Beta is a measure of the volatility of a portfolio compared to the market as a whole. Beta can be calculated by taking the covariance of the portfolio’s returns and the market’s returns and dividing this by the variance of the market’s returns. The second way of calculating beta is by using a regression. In this video, we cover both methods and also interpret the meaning of the beta figure.

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Overview: (0:00)
Calculate Beta Using The Formula: (0:57)
Calculate Beta Using A Regression: (2:34)

[simenandreasknudsen]

Do you calculate the market return? Or is that given? Thanks for the video!