What is Beta?

What is Beta?

Abdulla Javeri

30 years: Financial markets trader

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.

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.

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What is Beta?

5 mins 38 secs

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

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Summary
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Expert
Abdulla Javeri

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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