hi!

I am trying to code the beta coefficient using data exported from my excel data.

I have one column of return that I would like to analyse with a few other assets returns but i am not sure how to do so.

Thank you very much in advance

Regards

hi!

I am trying to code the beta coefficient using data exported from my excel data.

I have one column of return that I would like to analyse with a few other assets returns but i am not sure how to do so.

Thank you very much in advance

Regards

I made up some data. If this is not what you are looking for, please ask a more specific question.

setwd("C:/Users/Jerry/Desktop/R_files")

library(readxl)

df <- data.frame(read_excel("testfile.xlsx"))

df

lm(Returns ~ Asset_A + Asset_B, df)

df

Returns Asset_A Asset_B

1 -2 7 8

2 7 2 6

3 4 -1 2

4 3 5 -3

5 0 8 3

lm(Returns ~ Asset_A + Asset_B, df)

Coefficients:

(Intercept) Asset_A Asset_B

5.7107 -0.7031 -0.1118

@fcas80 gives the basic instructions, but if you're trying to estimate the security market line I suspect you want to regress the market return on just one stock's return.

```
lm(market_return~stock1_return)
lm(market_return~stock2_return)
```

Do you want the standardized coefficient, also called the beta coefficient, or the regular slope coefficients?

Strangely, the the former is represented by the **word** beta while the latter is represented by the Greek **letter** beta. The difference is that the beta coefficient is how many **standard deviations** the dependent variable changes when the independent variable changes by one **standard deviation**, while the regular slope is how many of **its units** the dependent variable changes when the independent variable changes by one of **its units**. This always confuses my students!!

hi !

I want to know the beta as a measure of a stock's!

thank you

Thank you for your reply,

I am trying to find the beta coefficient that will allow me to see how one asset responds to the other one's move in the market. I wanted to give a further analysis than correlation by adding the volatility.

Thank you

standardized regression coefficients

beta on the security market line is not the standardized coefficient.

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