# Beta equation (Mutual Funds)

- Beta equation (Mutual Funds)
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 = numder of observations (36 months)
x = rate of return for the S&P 500 Index

y = rate of return for the fund

__The New York Times Financial Glossary__

*Financial and business terms.
2012.*

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