Answered Is it possible to estimate a beta value of a time series data (stock) using the CAPM model on NumXl? usma huss March 31, 2013 19:47 Follow 0 Need to find estimate a beta value of a time series data under CAMP model. Facebook Twitter LinkedIn

## Comments

MohamadCheck out the white paper on calculating CAPM beta using the regression functions in NumXL

http://www.spiderfinancial.com/support/documentation/numxl/white-paper/financial-markets/calculating-capm-beta

MohamadTo estimate the CAPM beta, you's need to regress (SLR) between the two time series: market returns and your asset returns.

Asset Return = risk-free return + beta * Market Return

You can use NxRegress function to compute the slope (i.e. Beta) for the two time series. See the function reference page and example:

http://www.spiderfinancial.com/support/documentation/numxl/reference-manual/utilities/nxregress

You can even compute the beta value for different dates (using prior data) and examine the variation of beta over time.

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