Notes. Chapter 10, example 7 (beta calculation)Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Notes. Chapter 10, example 7 (beta calculation)This topic has 1 reply, 2 voices, and was last updated 13 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts November 12, 2011 at 4:29 pm #50451 m0rganMemberTopics: 1Replies: 9☆In the lecture notes we are given the following formula:beta=(covariance inv/mkt)/(variance mkt)In the example 7 in answers we can see that beta is calculated as:beta=(covariance inv/mkt)*(total risk of S)/(standard deviation mkt).Does that mean that the following formula is correct:(variance mkt)=(standard deviation mkt)/(total risk of S)? November 19, 2011 at 10:42 pm #89603 John MoffatKeymasterTopics: 57Replies: 54570☆☆☆☆☆No! 🙂In example 7 you are given the coefficient of correlation, which is the covariance/ (std devn mkt * std devn investment)The variance of anything is the (standard deviation)^2AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In