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2006-07-26 05:20:14 · 2 answers · asked by Mark P 1 in Business & Finance Investing

2 answers

I assume you want to track the beta of a stock as it changes over time (never heard of such a measure being useful) but you can do it if you make it yourself. If you are using 5 year monthly betas, just get historical monthly prices from a site like Yahoo Finance for as many months as you can for both the company and the comparison index (S&P 500?) and download them to an Excel sheet, making sure they are in chronological order (on Yahoo there is a "download to spreadsheet" link at the bottom, but dates will have to be inverted). Compute the holding period return in the columns next to the prices ((Mo.1 price-Mo.2 price)/Mo.1 price). Make sure the dates line up for the S&P and company prices! Likely there will be many more values for the S&P.

Now the tricky part.

Go to the very last row of the data collected and use the cell to the right of the collected data. Assuming S&P HPR data is in column B and company HPR data is in column D, type [=covar(Bxx:Bxx,Dxx:Dxx)/ var(Bxx:Bxx)]. Use the last 60 data points (or however many you're calculating beta for) for each collection of numbers. Then drag this formula up for as many periods as you have data for. This should give you values of the beta as if it were calculated and recorded at each month. You should then be able to make a chart out of these values

2006-07-26 05:46:47 · answer #1 · answered by John D 2 · 0 0

Why do you need a chart for beta? Beta is a number and does not require a chart to express...

2006-07-26 05:25:47 · answer #2 · answered by NC 7 · 0 0

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