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.

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