Can we calculate beta OF STOCK A with this information;
Weights- A=1/3; B=2/3
STDEV - A=.3; B=.5
CORRELATION OF STOCK A AND B= 0.7
Can we calculate beta OF STOCK A with this information;
Weights- A=1/3; B=2/3
STDEV - A=.3; B=.5
CORRELATION OF STOCK A AND B= 0.7
Yes…Beta(A,B) = correlation(A,B) x (Std Dev A / Std Dev B)