Overview

This Beta Excel Calculator template is great tool to measure the volatility of an individual stock/portfolio relative to the volatility of the market. Beta is a core part of the Capital Asset Pricing Model (CAPM). Typically Beta is interpreted in the following way:

The beta coefficient can be interpreted as follows:

  • β = 1 exactly as volatile as the market
  • β > 1 more volatile than the market
  • β < 1 >0 less volatile than the market
  • β = 0 uncorrelated to the market
  • β < 0 negatively correlated to the market

A stock/portfolio that has a larger beta is more volatile than the market and would have a higher expected return and equal risk.

Share
Reviews Add a review
No reviews yet

More From Corporate Finance Institute®

Browse our top rated business templates. See All
REIT Financial Model Template
169
0
This REIT financial model template acts as a guideline for modeling a real estate investment trust (REIT). This model will…
Energy Industry Comps Template Energy Industry Comps Template
1,035
62
This energy industry comps template provides a guideline and example of what a comparables universe would look like for a…
Financial Institution Dividend Discount Model
1,634
72
The financial institution dividend discount model uses future dividends to find the implied share price. This model is based on…
Loan Payment Calculator
1,342
0
The loan payment calculator allows users to determine the principal and interest payment each month until the full balance of…
DDM - Excel Dividend Discount Model Template
1,468
107
The dividend discount model template allows investors to value a company base on future dividend payments. This is based on…
Non-directional trading strategy template Non-directional Trading Strategies Template
1,235
0
The non-directional trading strategies template allow users to determine the profit when buying options. This template focuses on non-directional strategies…
See All