What is Beta?
In the earlier video on the overview of linear regression, Abdulla explained the process of how to construct the regression line. In this video, Abdulla will discuss the related jargon used in financial markets and calculate the numbers for the regression line using Microsoft Excel functions.
Overview
Beta is the relationship between an asset and the general return of the market. A positive beta means the asset’s value moves positively with the market and vice versa for assets with negative betas.
Key learning objectives:
Define beta
Understand how to calculate beta from a linear regression
Summary
Expert
Abdulla Javeri
Abdulla’s career in the financial markets started in 1990 when he entered the trading floor of the London International Financial Futures Exchange, LIFFE, and qualified as a pit trader in equity and equity index options. In 1996, Abdulla became a trainer for regulatory qualifications and then for non-exam courses, primarily covering all major financial products.
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