Cryptocurrency Q&A
Where can I get beta for CAPM?
Where can I get beta for CAPM?
Margherita
Sat Aug 17 2024
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7 answers
1861
Hello there,
I'm interested in obtaining beta values for the Capital Asset Pricing Model (CAPM). Could you please guide me on where I can find or calculate these betas? I understand that beta is a crucial measure of systematic risk in finance and would like to incorporate it into my investment analysis. Any reliable sources or tools you recommend would be greatly appreciated. Thank you in advance for your assistance!
7 answers
Raffaele
Sun Aug 18 2024
Subsequently, the risk-free return is considered. This is the return on an investment with zero risk, such as a government bond. It serves as the basis for measuring the additional risk taken by an investor.
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GyeongjuGlory
Sun Aug 18 2024
In the realm of cryptocurrency and finance, calculating a CAPM beta is a crucial step towards understanding the risk and return profile of an investment. This metric is derived through a specific mathematical formula, which aids investors in making informed decisions.
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Raffaele
Sun Aug 18 2024
The market return is then subtracted from the risk-free return to obtain the market risk premium. This figure reflects the compensation investors require for taking on additional risk in the market.
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HanRiverVisionaryWaveWatcher
Sun Aug 18 2024
The process begins by identifying the expected market return, which represents the average return anticipated for the overall market. This figure serves as a benchmark for comparison.
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Ilaria
Sun Aug 18 2024
The excess return calculated earlier is then divided by the market risk premium. The result is the CAPM beta, which measures the sensitivity of an investment's return to changes in the market.
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