Beta equation (Mutual Funds)

The beta of a fund is determined as follows:
(( n) (sum of (xy)) )-((sum of x) (sum of y))
(( n) (sum of (xx)) )-((sum of x) (sum of x))
where: n = numder of observations (36 months)
x = rate of return for the S&P 500 Index
y = rate of return for the fund
The New York Times Financial Glossary

Financial and business terms. 2012.

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