`β = Cov(R`_{i},R_{m}) / Var(R_{m})

Beta is a measure used in financial analysis to measure the risk-reward ratio of a stock. The formula for calculating beta is`β = Cov(R`

where R_{i},R_{m}) / Var(R_{m})_{i}is the return of the stock you are analyzing and R_{m}is the return of the market. Beta can be calculated manually or using programs like Sourcetable.

Beta is a measure of systematic risk associated with a security, portfolio, or investment opportunity. It is used in the capital asset pricing model (CAPM) to price risky securities and to estimate expected returns of assets.

`The Capital Asset Pricing Model (CAPM) is a model used to determine the expected return of an asset given its level of risk. The formula for CAPM is: ``E(Ri) = Rf + ÃŸi(E(Rm) - Rf)`

, where E(Ri) is the expected return of the asset, Rf is the risk-free rate, ÃŸi is the beta coefficient of the asset, and E(Rm) is the expected return of the market portfolio.

`β = Cov(R`_{i},R_{m}) / Var(R_{m})

Beta is a measure of the volatility of a security or portfolio compared to the market as a whole. This allows investors to assess how their investments may move in relation to the market.

Beta is a dynamic measure, meaning that it is constantly changing as the market fluctuates. As such, investors must pay close attention to their beta and make adjustments accordingly.

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