Jesus Christ I was having trouble doing my finance project and i cant tell u how much your video has helped me !! THANKS A LOT U ARE A GOOD MAN HAHA :)
Nice demo - thanks v much. I was initially surprised by the way you worked out the ratios, until I realised that the most recent dates are at the TOP of the sheet (Doh !)
how did you calculate the returns? i mean what is that formula used? it is similar to calculating CAGR. Can you please explain why you used that formula?
When we are going to find the return of close price over the recent days. Why do we have to take the logarithm like: type in ln(close price day 2/close price day 1). But here you are just simply dividing it. Do someone have an explanation?
What you have just computed is the beta for weekly returns. How do you compute it for monthly, quarterly , semi-annually or yearly returns when you have weekly data?
Beta is to see if the stock of the company you are valuing moves with the stock trading trends. in this case, amazon is the stock that you are valuing, and the reference point to compare to the stock trending is the S&P 500.
@@ST-wx6vw I think Corrieses is correct. Expected Return = Risk Free Rate + β(Return on Market - Risk Free Rate) therefore: Er - Rf = β(Rm - Rf) y value used is expected return, x value is market risk premium, value found will be Beta. But if you don't take away risk free rate then the Beta should be wrong. But I may not be correct.
Hi, to calculate return ...original formula is ( latest price - previous price) / previous price. when presenter has used latest price/previous price - 1 ..it means the same if you solve this equation cross multiply and bring common denominator.
hi, if i need to find the required rate of return on a ftse 350 company of my choice, so i use the s&p 500 historical prices on yahoo like you did or do I use the ftse 350 historical prices? thanks!
May I ask why you didn't use the excess return to calculate beta? My lecturer taught us to calculate the beta based upon the excess return rather than return.
How to find a stock which is giving me max return in which month and in which year consistent where i have 20 years of data .... can some one help me out ....
Probably Nifty Weekly or Sensex Weekly or any benchmark... the weekly or daily depends on whether u've taken monthly or weekly for the individual stock as both should be same.
Hello sir, When I download VESTAS' stock history data, I receive it in Danish currency. I want to know whether you can download it in euros? Also the S&P 500 is in $. I am interested in getting it in euros too.. do you know a website where I can download it that currency? And yea finally when I downloaded the sheet from yahoo finance, all the data was in the same column, so I had to separate it all manually, do you know the reason for why that happens? Look forward to hear from you, thx! :)
=B2/B3-1 it says Value error! I tried on different sheets I know it says value cause the answer is negative ( etc -2.96 %). Instead of giving me the answer in % it just says Value! What should I do, please help?
Thanks Robert, it turned out that the shares did not start trading until a later date, using the example above if amazon had less days worth of closing prices and i was using linear regression slope to calculate the beta, from my understanding both x and y for the calculation of a slope must be of equal size. In my scenario would if be valid if i used the smallest size to calculate the slope?
Thanks alot sir I really do appreciate your help with this video I started off in this market not seeing the results I expected and not understanding why but ever since I started investing and trading with Mr Romero pieto I now understand and know the true worth of having an expert by your side .
bro 11 year video saved me in 2023 thank you.
Jesus Christ I was having trouble doing my finance project and i cant tell u how much your video has helped me !! THANKS A LOT U ARE A GOOD MAN HAHA :)
Just use the =SLOPE(price of stock set, index set) function
@@neilcarvalho8349 wish i could, i dont even remember this comment lol. Just google excel slope function.
Nice demo - thanks v much. I was initially surprised by the way you worked out the ratios, until I realised that the most recent dates are at the TOP of the sheet (Doh !)
my guy you just helped me so much. You LOVE to see it
Very helpful and informative video. Thanks so much for a really well done explanation.
Thank you so much, you saved my semester !!!
Why not use COVARIANCE.S and VAR.S instead of .P (its a sample)?
same question sir
Thanks for the video sir.. I was looking for it desperately
Very helpful. Thanks for taking the time to do this.
Very helpful thanks for taking time to post this.
Apologies Robert one last question, how would you treat the formula if the previous price was zero? Dividing by zero is not possible
Excellent, helped with a small project I am working on.
ty for such helpful nd clear videos...
i appreciate👍
Still very helpful in 2018. Thanks a lot, sir!
that SLOPE function is cool!
thank you very much. Your video is really helpful!!!
Thank you very much for your video....it solved a lot of my queries
Crystal Clear! Thanks mate.
take LN (today / yesterday) for returns. LN stands for Natural Log
how did you calculate the returns? i mean what is that formula used? it is similar to calculating CAGR. Can you please explain why you used that formula?
When we are going to find the return of close price over the recent days. Why do we have to take the logarithm like: type in ln(close price day 2/close price day 1).
But here you are just simply dividing it.
Do someone have an explanation?
What you have just computed is the beta for weekly returns. How do you compute it for monthly, quarterly , semi-annually or yearly returns when you have weekly data?
just download different data lol
Thanks for posting! This was super helpful :-)
You my friend are a life saver. Thank You
Very much useful sir. Thank you🙏🙏🙏
Wow, that's so simple... Thanks
thanks for this; do you need to involve a risk-free rate?
Thank U very Much！！！
My question is what is the difference between Beta & Sharp Ration?
Awesome...thank u very much for sharing the video..
Hey just a short question since im new to this, what is the reason again for using 2 stock companies for computation?
Beta is to see if the stock of the company you are valuing moves with the stock trading trends. in this case, amazon is the stock that you are valuing, and the reference point to compare to the stock trending is the S&P 500.
Thank you for your video sir!
JUST WHAT I NEED.. THANKS !
thanks Kim, How about expected return? How would you calculate that? I want to determine whether a security is overpriced or not
Great explanation! Thank you.
Very informative and helpful. Thank you very much!! :)
That was really helpful
yes, the slope function is easier to undertand, i still dont under the covariance , but thank you so much
This is incorrect, you should use EXCESS market returns and EXCESS stock returns - corrected for the risk free rate.
Excess Return relative to a benchmark is Alpha not Beta. This video is about Beta. Video appears correct to me.
@@ST-wx6vw I think Corrieses is correct.
Expected Return = Risk Free Rate + β(Return on Market - Risk Free Rate)
therefore: Er - Rf = β(Rm - Rf)
y value used is expected return, x value is market risk premium, value found will be Beta. But if you don't take away risk free rate then the Beta should be wrong. But I may not be correct.
hello
first of all i want to thank you for this video
my question is : in order to calculate the return why you have to (-1) ?
thank you
Hi, to calculate return ...original formula is ( latest price - previous price) / previous price. when presenter has used latest price/previous price - 1 ..it means the same if you solve this equation cross multiply and bring common denominator.
Shortcut for percentage calculations
really well-explained and useful, thanks!!
For example if we need to find out beta as for today, can we use the date from like 1997 till 2018? Won’t this reduce our standard errors??
Nice explanation
Hi, How about if you are asked to find the stock beta for just S&P 500. How would you do this?
Thank you so much, very helpful :)
thank you very much sir
very clearly explained! thanks.
This video help me out, thank you so much! :D
Thank you so much, but i am just wondering what is the best time period we need to chose for calculate beta, is that 10 years?
thanks. very useful for me that i have to do my project.
hi, if i need to find the required rate of return on a ftse 350 company of my choice, so i use the s&p 500 historical prices on yahoo like you did or do I use the ftse 350 historical prices? thanks!
Thank you, that was just perfect!
Great video! Thanks.
Thanks! Clear and helpful!
my beta is coming as 20, is that right? I followed your steps, but I feel the beta is not accurate.
Great tutorial!
I should say better than others since was in detail. non of the other videos start from how to get s&p 500. thankssss
Thanks a lot ,very useful
Awesome...thanks for the help...
May I ask why you didn't use the excess return to calculate beta?
My lecturer taught us to calculate the beta based upon the excess return rather than return.
they'll be the same
Really Helpful.. Thank you
How to find a stock which is giving me max return in which month and in which year consistent where i have 20 years of data .... can some one help me out ....
thank you....
really useful
thanks! So in short my method was wrong?
Thank you for your Information
Why did you take S&P share prices?
What prices should be taken for Indian companies?
Probably Nifty Weekly or Sensex Weekly or any benchmark... the weekly or daily depends on whether u've taken monthly or weekly for the individual stock as both should be same.
Can you find the beta of just one stock?
hi, I would like to know where to find the beta caracter in excel please?
can i use returns as percentages from one close to another rather than as fractions in this formula?
@2:55 how are you selecting the array from the cell you are on?
shouldn't you take the log return?
is the S & P 500 prices the average prices of all the stock that make up the S & P 500?
i have a question, can i use the following formula to calculate the returns : 100 - ((previousPrice/currentPrice) * 100) ?
thank you for this video
Excellent sir
Hello sir,
When I download VESTAS' stock history data, I receive it in Danish currency.
I want to know whether you can download it in euros?
Also the S&P 500 is in $. I am interested in getting it in euros too.. do you know a website where I can download it that currency?
And yea finally when I downloaded the sheet from yahoo finance, all the data was in the same column, so I had to separate it all manually, do you know the reason for why that happens?
Look forward to hear from you, thx! :)
=B2/B3-1 it says Value error! I tried on different sheets I know it says value cause the answer is negative ( etc -2.96 %). Instead of giving me the answer in % it just says Value! What should I do, please help?
hand type the number in the cell and see if that helps
when i divide c3/c4 i get a red c4 telling me its a error why is this?
Great video man,
My question is. Is the "Excess Returns for Market Portfolio" the same as "Returns"
no. they are different
Really clear
Very helpful
Thank you very much!
Thanks Robert, it turned out that the shares did not start trading until a later date, using the example above if amazon had less days worth of closing prices and i was using linear regression slope to calculate the beta, from my understanding both x and y for the calculation of a slope must be of equal size. In my scenario would if be valid if i used the smallest size to calculate the slope?
Awesome! thank you!!!
Thanks - anyone able to explain how to calculate alpha on excel using share prices??? really in need of some help! thanks again
Helped 😊
very useful...thanks
Thx...totally hlpful...
Thank you so much
very helpful!
slight error made in return formulae, =(p1-p0)/p0 and not (p0-p1)/p1=(p0/p1)-1
useful video.....thanks
can you have a negative beta?
Thanks alot sir I really do appreciate your help with this video I started off in this market not seeing the results I expected and not understanding why but ever since I started investing and trading with Mr Romero pieto I now understand and know the true worth of having an expert by your side .
His trade execution quality and profiting is well structured with great financial features.
Apparently this is one of the most gifted trader around,I have only been with him for 3 months now and I have learnt so much about his trading skills.
Good good content.
Am so happy seeing all this good good content about the man behind my successful tradings Mr Romero pieto.
Vincent brown am from Canada 🇨🇦 does Mr Romero pieto accepts New investors or students ?
why s&p 500 and not russell 3000?
How do you do it if you're using 3 companies and not just 2?
you have to do each company seperate with the market index
YOU STILL HOLDING AMAZON STOCK TILL NOW??
Is this levered beta or un-levered beta?
very helpful
Is this the asset beta or the equity beta?