eagles_dare13

All three of these questions ask us to compute beta
—– Schweser question #88908:
we are given “Standard deviation on the stock market index: 20%” and we use .20 in the denominator
—– Schweser question #88907
we are given “standard deviation of the market returns is 32%” and we use .32^2 in the denominator
—– Schweser question #86987
we are given “The variance of the market is 0.04632” and we use the variance of the market to compute beta
*** I would be VERY grateful if somebody could explain when to use std and when to use variance in the denominator when computing the beta
Thanks