Hello,
In the CAPM/MPT chapter, I was trying to get an intuitive understanding of how Beta is computed, without using maths (just like CAPM can be expressed as price of time + price of risk * Quantity of risk). Covariance upon variance can be understood, but I was wondering what an intuitive understanding of cross volatility could be in Beta = Correl(i,M) * x-vol.
Thank you
In the CAPM/MPT chapter, I was trying to get an intuitive understanding of how Beta is computed, without using maths (just like CAPM can be expressed as price of time + price of risk * Quantity of risk). Covariance upon variance can be understood, but I was wondering what an intuitive understanding of cross volatility could be in Beta = Correl(i,M) * x-vol.
Thank you
