Calculating Company Beta

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Capital Asset Pricing Model > Forum > Calculating Company Beta

Calculating Company Beta
GEORGE ONYANGO, STUDENT, Kenya, Member
How do we find beta for a company?
 

 
How to Find Beta for a Company
Habib Abdulkarim, Student (MBA), Member
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, Member
@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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