Beta equation error in solutions/capm.py ? #4
Description
beta is calculated as:
beta = stock_cov / market_variance
where: stock_cov = market.corr(coca)
But it should be: stock_cov = market.cov(coca)
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beta is calculated as:
beta = stock_cov / market_variance
where: stock_cov = market.corr(coca)
But it should be: stock_cov = market.cov(coca)