How to find Covariance of a two security portfolio (excel) to use in covarianve calculation...
90.2K
Verified Solution
Link Copied!
Question
Finance
How to find Covariance of a two security portfolio (excel) to use in covarianve calculation of market
I need to find the market beta of a target portfolio. In order to do that I need to do =covariance(target portfolio excess returns, market excess returns) / variance(market excess returns)
The problem is I have two secruites in the portfolio. So how do I go about the 'target portfolio excess returns' numbers
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
