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Uploaded by bionicturtledotcom on Sep 26, 2008
Beta is covariance (x,y)/variance(y). It has many applications. Including, for example, the minimum hedge ratio for a future hedge on a commodity, the capital asset pricing model (CAPM), cash flow beta, and marginal value at risk (marginal VaR).
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thank you so much.. very helpful
VenVig 2 months ago
clever comparisons. thanks
dajieda0 3 months ago
I think it's SCL (security characteristic line) not the SML but they are basically the same thing with difference X-axis variables.
dajieda0 4 months ago
nevermind i get it. just algebra.
elcat9091 1 year ago
at 5:45, what happens to rho-sf after the third equals sign?
i think since rho=cov(s,f)/(sig(s)xsig(f), the top and bottom sig(s) canceled, but he didn't show it that way.
very helpful
konakonapitt 3 years ago
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thank you so much.. very helpful
VenVig 2 months ago
clever comparisons. thanks
dajieda0 3 months ago
I think it's SCL (security characteristic line) not the SML but they are basically the same thing with difference X-axis variables.
dajieda0 4 months ago
nevermind i get it. just algebra.
elcat9091 1 year ago
at 5:45, what happens to rho-sf after the third equals sign?
i think since rho=cov(s,f)/(sig(s)xsig(f), the top and bottom sig(s) canceled, but he didn't show it that way.
elcat9091 1 year ago
very helpful
konakonapitt 3 years ago