BizTerm Definition Beta equation (mutual funds) Full Definition

The beta of a fund is determined as follows:
[(n) (sum of (xy)) ][ (sum of x) (sum of y)]
[(n) (sum of (xx)) ][ (sum of x) (sum of x)]
where: n = # of observations (36 months)
x = rate of return for the S&P 500 Index
y = rate of return for the fund


