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September 2020 CM2 Paper B 2iv

F

Fiorentinaa

Member
On this question we are asked to calculated beta based on some data we are given.
This confused me because it was 8 marks and given the data we could calculate it simply using the covariance and variance functions in excel. =COVARIANCE.P(market returns ,asset x returns)/VAR.P(market returns).

The exam solutions are much more complex and resultantly much more time consuming but arrive at the same answer.

Would the full 8 marks be scored for simply using the covariance and variance functions
 
Hi,
Yes - alternative Excel approaches would be accepted, as long as you demonstrate your approach and you arrive at the correct answer.
Alvin.
 
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