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Thread: Beta-Slope?

  1. #1
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    Beta-Slope?




    Hello,

    I am working on how to calculate a Beta for a security. I have learnt it in the excel but I dont know why Slope function is used to calculate Beta. Can any one explain me? Thanks in advance...

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    well, in linear regression, we assume a line equation: Y hat= Constant + bX
    where b is beta value; or in other words, with Y=C+bX, b is the slope of that line

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    Whenever Both y & x are normalised variables then coeff. b in y= ax + b becomes Beta.

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    Re: Beta-Slope?


    Here's a spreadsheet that shows you how to calculate beta in excel

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