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
Financial Institution Dividend Discount Model
318
0
The financial institution dividend discount model uses future dividends to find the implied share price. This model is based on…
Loan Payment Calculator
246
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
300
22
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
295
0
The non-directional trading strategies template allow users to determine the profit when buying options. This template focuses on non-directional strategies…
restructuring financial model template preview 1 Restructuring Financial Model Template
522
0
This restructuring financial model template is used to demonstrate the financial interactions behind the restructuring process. Adjust this model to…
TMT Financial Model Template Preview TMT Financial Model Template
696
0
This TMT financial model template is used to value technology, media, and telecom firms. This model provides a template to…