WHERE TO FIND BETAS
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Major brokerage firms calculate the betas of securities they
trade, and then publish their calculations regularly in what are called beta
books. In these books, you can look up the estimated betas of publicly
traded companies, along with some other useful statistics. This is a simple and
easy way to compare a large number of betas in a short period of time.
The formula analysts use to calculate beta looks like this:
In other words, the beta of a firm equals the volatility of the
firm divided by the volatility of the market, multiplied by the degree to which
the two are alike.
Unless you enjoy solving complicated equations, you can save some
time and trouble by simply finding yourself a beta book.
Now let's review what we have