Finding a stock’s beta

A question from Yahoo! Answers:

Where can i find the beta coefficient of IBM? is it on their annual report?

You can compute it yourself based on stock price history and S&P 500 history. There are different ways to compute beta though; different reporting services use different conventions. Some of the more popular ones include computing beta on daily returns over the last 90 days, on weekly returns over the last two years, and on monthly returns over the last 60 months.

Of you can simply look it up on Yahoo! Finance or MSN Money:

http://finance.yahoo.com/q/ks?s=IBM
http://moneycentral.msn.com/detail/stock…

Right now, the former reports IBM’s beta as 1.25, the latter, as 1.69.

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