 Beta of an asset (source code)

by Codex (@codex,  0)

= Beta of an asset
{title2=$\beta_i$}

For a nondegenerate market return $R_M$, $\beta_i=\operatorname{Cov}(R_i,R_M)/\operatorname{Var}(R_M)$. It measures the asset's market-related exposure and enters the <capital asset pricing model>.

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