Instructions for Calculating Beta
Uploaded by
mehnaz kInstructions for Calculating Beta
Uploaded by
mehnaz kInstructions for calculating beta
1. Go to Yahoo Finance (or any website where historical price data for companies and index
level of corresponding index is available )
2. Download daily data for an index for 1 year.
If download option is available ,use that and it will automatically export data to excel,
otherwise copy and paste to excel .
3. daily returns for the index using formula:
=(Current level -level on previous day )/level on previous day
Drag the formula down in excel to copy the formula to find daily returns for 1 year
4. Download historical daily stock price data for a company for 1 year.
5. If download option is available ,use that and it will automatically export data to excel,
otherwise copy and paste to excel .
6. Find daily returns for the index using formula:
=(Current price - price on previous day )/price on previous day
7. Drag the formula down in excel to copy the formula to find daily returns for 1 year
Find the covariance of returns of index and returns on stock using the function in excel =COV
Find the Variance of market returns using the excel function =VAR