New answers tagged beta
6
votes
Accepted
Why stock beta is not equal to its index weight?
It's trivial to calculate the betas given the index weights $w$ and the covariance matrix of all stocks $\Sigma$:
The index return is
$$
r_{\rm index} = w^T r
$$
The beta of stocks to the index is
$$
\...
- 5,891
Top 50 recent answers are included