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How do I calculate beta compared to a liquidity factor?

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I am trying to figure out how to calculate beta (sensitivity) of the monthly return compared to the liquidity factor.

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The dependent variable is monthly returns. The independent variable is liquidity factor. Run simple linear regression
Monthly returns = b0+b1*liquidity factor
The slope coeffcient or b1 is the beta value you are looking for.

You can use Excel to run the regerssion. GO to ...

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