Calculating Company Beta

      
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		            		GEORGE ONYANGO, Kenya
			            
Calculating Company Beta

	          		How do we find beta for a company?
				      
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						            	Habib Abdulkarim
Student (MBA)
												
				                How to Find Beta for a Company

													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.
				                
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						            	Deniz Yalcin
Student (MBA), Turkey
												
				                Calculating the Beta

													@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..
				                
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