Calculating Company Beta

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			              Capital Asset Pricing Model > Best Practices > Calculating Company Beta
			            
				              Calculating Company Beta

			                GEORGE ONYANGO
			            
	          		How do we find beta for a company? (...) Read more? Sign up for free

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			                  	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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