New answers tagged beta
Normalize for trading days if possible.
Did the portfolio manager have the option of investing in emerging markets? If yes, use MSCI All-World. If the portfolio has holdings based in countries with "developed markets" yet has has emerging markets exposure to revenue/earnings, the convention is to use MSCI World.
For two stocks that are independent and identically distributed (iid), do they have the same beta? No. If you have two stocks perfectly negatively correlated, then ones' beta would be positive, and the other's - negative, as long as the beta is not zero. Does the number of data points matter? No, as long as your statistics are significant.
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