How to Calculate Beta using Covariance and Variance

[@ghada6763]

You're a life saver sir and this channel is nothing short of a gold mine

[@Edspira]

Thank you!

[@inhVu-db7rw]

@@Edspira you even do everything for free, love you so much sirrrr 🥰

[@rb991]

I just have to say something else: doing this mannually is much more easy, at leat for me, to understand that. thank you again.

[@ghada6763]

Man this channel is a life saver fr

[@rb991]

Thank you very much for this simple and highly comprehensible explanation of this important subject.

[@pke81885]

The (n-1)s cancel out in Beta and can be skipped if Beta is all you're after. You only need them if you are also interested in the covariance and variance (and have a relatively small sample size).

[@jiayiwang2696]

better than my finance prof... thank you so much

[@bm___995]

How do you calculate the Square deviation of 2.3℅ and So on😢

[@ivornworrell]

*Hello, can you please explain a bit more why you subtracted 1 from n at abot **5:54** in the video? thank you.*

[@Edspira]

When you're looking at a sample of data, you can only come up with an estimated mean, not the true mean of the population. Here's a detailed explanation as to why this matters and how using "n-1" instead of "n" corrects this: duramecho.com/Misc/WhyMinusOneInSd.html

[@ivornworrell]

Thank you for the reply.

[@StayPolishThinkEnglish]

my God. This is so nicely clarified

[@Edspira]

😀

[@richardsalley9848]

Thank you very much for this excellent example!

[@Edspira]

No problem!

[@supergamer2897]

@@Edspira 🙄🙄🙄🙄🙄🙄

[@supergamer2897]

@@Edspira kuch bhhii

[@detiboy4709]

Hello, could you please make a video on how to calculate the beta of bonds. Which is the market to take as reference?

[@jnkvngz2965]

so well explained, thanks!

[@Edspira]

Glad it was helpful!

[@SaiCharan441]

Thanks for the videos this channel is very helpful did my exams with this help If Possible please do a video on derivatives

[@reinieramarante2493]

I have difficulty computing when it comes to product of derivation and squared derivation. The answer is different 😕

[@supergamer2897]

Are ham search kiye son Matlab beta yaha aa gya computer vala beta

[@yumengliu3074]

Very helpful thanks!

[@Edspira]

You're welcome!

[@jessesolorzano9429]

This is such a great video - Thank you! One question: which monthly market return are you using?

[@lovemepiano]

thank you! this was a lot of help

[@supergamer2897]

Hap

[@Franckzzz]

Why did you do multiplication by 1/n-1 and then do division by n-1. I know it the same but why use the two?

[@claudiondou]

Absolute lifesaver thank you so much!

[@valuablememories5603]

Please help me! At 5:30 I´m trying to count the squared deviation of 2.3 %. How can I count it out on the calculator so I get the same answer as you with 0.000544444? I would apreciate the help..

[@HafeezBlackLeg]

just write the answer from the calculator, the last answer should be almost the same one or yet even better

[@valuablememories5603]

@@HafeezBlackLeg What..? I mean how do I calculate it step by step. You can´t just tell me to calculate it as I dont´know how and that´s why I ask you, come on..

[@valuablememories5603]

Sorry, english is not my first language..

[@HafeezBlackLeg]

New Game New Game its a square of the margin.... 2.3% convert it into number by dividing it with 100.. 2.3%/100 = 0.023 then you square the number 0.023^2 or 0.023 x 0.023 you will get the answer 0.000529

[@daviddoms1898]

devide 2,3% by 2,3%

[@MohammedAB2030]

you are a legend

[@Behemoth3434]

Excellent explanation, thank you.

[@harshitsahni20]

Very well explained. Thanks.

[@khadizaakhtar1616]

This was very helpful...thanks 😀

[@umbertobombace8367]

I don't get why you divide by n-1 instead of n

[@troybird8253]

This video would help for your final in statistics!

[@Rajannogamiya]

why you are dividing by N-1 my answer in coming by dividing only with N please look into it

[@palostaponjr4575]

anybody know please why not included in variance squared for bubsy, waiting reply..thank you very much

[@KanielOutis147]

my teacher showed us a way of doing it different, where you square the difference between the figure and the mean or something?

[@KanielOutis147]

oh just seen you square it later

[@supergamer2897]

Achha

[@christopherbarrett9900]

Thanks so much!

[@hmmm9658]

So the variance is the same as standard deviation?

[@Edspira]

The standard deviation is the square root of the variance

[@azboshippuden3770]

God bless you thank you so much for this video

[@Clifffffffffford]

Thanks!

[@Edspira]

No problem!

[@theanmol1704]

Sir we know formula of Beta is = Covariance(stock,market)/ Variance(market).....---->Equation 1 But sir why do we say that if a firm has Beta equal to 1.75. If market returns increases by 1% then the company/firm will increase by 1.75% . How can we use the equation 1 which i mentioned & come up with the conclusion written in the next line. Awaiting your reply... Thanks Sir :)

[@ehsiao412]

You cant arrive it with simple arithmetics. Cov and Varr are average figures. the conclusion is an average case

[@ehsiao412]

If you pay attention to his last statement he said if market go up by one percent then the company's stock go up by beta%. To be precise, it should be if the change of the market return go up by one percent, then the change of company return go up by beta%

[@masserraquiz8770]

how did you come up with the product deviation? I got 7.36

[@Saad-vp6en]

You should be calculating the numbers in decimals since they in percentage format (0.032 x 0.023)

[@MemeBay1]

5:58 did not understand that!

[@Erik-pn4jd]

The total of squared deviation (0,2953..) its divided by 6-1 (5). So in this case 0,2953.. / 5 = 0,59066...

[@sullibeats]

you sound like bill gates ngl

[@Memories786a]

😊😂😂😅