CLEC Investment & WealthCLEC Investment & Wealth Database
CLEC Investment & WealthCLEC Investment & Wealth Database
Homepage
Important Materials
Presentations
2023
2023-2024 Files
The Truth About Insurance: Buying Insurance Is Always a Loss. The More Insurance You Buy, the Poorer You Become! Do Not Buy Insurance: Casual Investment Talk, CLEC Investment Channel, Post Date: December 02, 202000049 Short: Questions from Taiwanese investors: Are 00662's internal expenses a problem? Tax issues with sub-brokerage and overseas brokers. CLEC Investment and Finance Channel, September 29, 2023November 27, 2023 Recalculation: The Very Different Fates of Buying and Renting After Thirty Years, Second Edition00004 Special Topic: Systemic Risks You Must Know About Securities-Backed Lending! Know the Risks; Understand the Risks; Control the Risks!2x and 3x LeverageBeta CalculationDo Not Open an Account with an Overseas Broker; Do Not Use Sub-BrokerageCan I Contribute to a Traditional IRA After Maxing Out My 401(k)?If You Still Have to Ask About Asset Allocation for Stock Pledging, You Should Not Pledge or You Could Go Bankrupt!My U.S. Brokerage Is Charles SchwabWhy We Recommend Investing in the Nasdaq-100 Index Fund Instead of the S&P 500Cash is like air: it may not generate profit, but it can keep you alive! Rev 1.1Which account is more tax-efficient for cash in money market funds and leveraged funds?Smart Rebalancing MethodQuestions About Asset AllocationThere Must Be a Limit to Human PessimismSimple Investing Method: Buy a Home or Rent and InvestSafe Asset Allocation for Retirees With No Income Who Use Pledged Stock Loans and Have Already Borrowed a Large Amount! rev. 2.0Asset Allocation When You Have Pledged Stock, Whether Retired or Not, and Whether You Borrow for Expenses or NotLeveraged Funds, Cash, and QQQ/SPY Portfolios: Risk and Return monte_carlo_sim_cagrUnited States and Taiwan: Retirement Asset Allocation for Living by Withdrawing From Assets, Without Pledging, Across Different Funding Levels!Who Can Use Stock Pledging, Who Can Use Leveraged Funds, and Understanding Their RisksWho Can Use Stock Pledging and Leveraged Funds: Understanding the Risks, rev 1.0Asset Allocation Article Information SummaryIf Your Funds Are Not Enough, You Have Not Started Pledging, You Have Not Watched the Videos Carefully, and You Have Not Studied the Excel File, Do Not Ask Pledging Questions!Stock-Collateral Loan Questions: Reply rev 1.0Asset Allocation for People Still Some Time Away from Retirement rev1.0Asset Allocation for People Still Some Time Away from Retirement rev2.000662 and QQQ Performance Question
2024
2025
2025 Files
2026
2026 Files
Hundred-Million Investment Life Lecture
X (Twitter)
Presentations2023-2024 Files

Beta Calculation

Beta Calculation

Beta Calculation cover
Number: P-027
Published: Not specified
Pages: 2
Source filename: 【Beta 的計算】 .pdf
Original PDF: Open PDF

Related Materials

  • Previous presentation: 2x and 3x Leverage
  • Next presentation: Do Not Open an Account with an Overseas Broker; Do Not Use Sub-Brokerage

Document Text

We Treat QQQ (00662) as Beta 1.0

Beta Calculation

Being roughly right in investing is better than being precisely wrong.

When we calculate Beta, we use the index fund as beta 1.0. The comparison index fund we choose is QQQ, so we define QQQ as beta 1.0.

Some people outside insist that only SPY should be treated as Beta 1.0. That is rigid textbook thinking.

We treat QQQ (00662) as beta 1.0.

QLD (00670L), as a 2x leveraged fund, is treated as beta 2.0.

Cash, including money market funds and 00864B, is treated as beta 0.0.

The Beta calculations for the following allocations are therefore:

Asset allocation 1:

70% 00662 (QQQ), beta 1.0

20% 00670L (QLD), beta 2.0; 10% 00864B (money market), Beta 0.0

Beta = 70% x 1.0 + 20% x 2.0 + 10% x 0.0 = 0.7 + 0.4 + 0.0 = 1.1

Asset allocation 2:

80% 00662 (QQQ), beta 1.0; 10% 00670L (QLD), beta 2.0; 10% 00864B (money market), Beta 0.0

Beta = 80% x 1.0 + 10% x 2.0 + 10% x 0.0 = 0.8 + 0.2 + 0.0 = 1.0

2x and 3x Leverage

2x and 3x Leverage

Do Not Open an Account with an Overseas Broker; Do Not Use Sub-Brokerage

Do Not Open an Account with an Overseas Broker; Do Not Use Sub-Brokerage

Table of Contents

Related MaterialsDocument TextWe Treat QQQ (00662) as Beta 1.020% 00670L (QLD), beta 2.0; 10% 00864B (money market), Beta 0.0