Calculating Company Beta

Capital Asset Pricing Model > Forum Log in

Calculating Company Beta

How do we find beta for a company?

How to Find Beta for a Company
Habib Abdulkarim, Student (MBA), United Kingdom
You normally regress using historical movements in prices of the stock. To regress, get historical data on the stock and use y = a + bx to get the vaue for b (where y, the dependent variable is the stock price and b is a proxy for market price - usually a stock index).
See also this video on calculating Beta with Excel.

Calculating the Beta
Deniz Yalcin, Student (MBA), Turkey
@Habib Abdulkarim: When calculating the beta by using CAPM, which of the following would give more consistent and realist results...
We should use the historical data of a t-bill that mimics the Rf rate of course. But which is more proper to put in the regression: the returns of the asset directly OR it's first differences? Thanks..



    Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  

Special Interest Group Leader

You here

More on Capital Asset Pricing Model
Best Practices

Expert Tips


About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2016 12manage - The Executive Fast Track. V14.1 - Last updated: 23-10-2016. All names tm by their owners.