Calculate Beta in Portfolio Management, Kap v CFAI
In the portfolio management section, Kaplan and CFAI materials give me different ways to calculate Beta. When I go through the Kaplan Qbank and then the CFAI TT, I run into questions on calculating Beta, and depending on which way I do it, I get conflicting answers. From the Schweser notes, Beta is calculated in two ways:
1. Beta = Corr X (SDi/SDm), or
2. Beta= (COVim/VARm)
CFAI gives it to me as such: (CORRm X SDi)/ SDm
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