nobody's now how to find beta of ftse100 or nikkie225?

Question

i am student and what to know where can i find beta of ftse100 and nikkie225, if i want to measure the risk involve in investing in these indexses.

Answer 1

You can do this in Excel using the Linear Regression function.

You need three things to do this right. You need the returns on the asset that interests you, you need the returns for the market and you need the returns on the risk free asset.

Let's suppose that in one column you have monthly returns of the FTSE100. In another column, you have market returns (let's say monthly returns on the S&P 500). In the third column you have the one month return on short T-Bills.

Create a new column of (FTSE-TBill) returns and another column of (S&P - TBill) Returns. These are called the excess returns of FTSE and the Exces returns of the market.

Now run a regression of the Excess returns of FTSE against the excess returns of the market. The coefficient of the market is the beta.

If you don't have the risk-free returns, you can get an approximate value by regressing the returns of FTSE against the returns of the market. It isn't quite right, but is very close.

Most people (including Bloomberg) don't subtract off the risk free rate first. But they should

Answer 2

A beta can only be measured against an index. You need to determine what index you will be measureing the betas against (ex. S&P 500). Since these are indexes, the beta compared to themselves is always one.

Once you figure out what you are measuring, the beta is calculated by the covariance of the returns and the index divided by the variance of the index. Put the historical returns in one column and the index returns in the other. In excel it looks something like this:

covar(A9:A39,B9:39)/var(B9:39)

Answer 3

Randy Orton is a large heel. easy as that... people hate his character because of the fact of what he has been doing as of previous due. Dragon[uncooked] does make a large element regardless of the shown fact that. he's taking part in this "comic strip character"-ish villain that may not be achieveable. And the certainty that he hasn't been punished (legally) for what he's "accomplished"...makes the storyline that quite greater a approaches-fetched. So perchance because of the fact of this some people dislike him....or greater, his character. regardless of if it is not Orton I blame for that. Dragon[uncooked] did point out something approximately Randy 'insulting his intelligence', and whilst I admire his opinion; i do no longer extremely consider it. If there is absolutely everyone liable for "insulting our intelligence", that ought to be Vince McMahon and his writers. yet as long as this tale-line keeps, so will this insane character named Randy Orton!