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Calculating Company Beta
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GEORGE ONYANGO
3
GEORGE ONYANGO, Kenya

Calculating Company Beta

How do we find beta for a company?

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  Habib Abdulkarim
2
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.

  Deniz Yalcin
0
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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Special Interest Group


More on Capital Asset Pricing Model
Summary Discussion Topics
topic Can Beta of a Stock be 0? And can Beta be Negative?
topic What is Beta? Explanation and a Few Remarks
topic Application of Capital Asset Pricing Model in Pakistan
topic Raw Beta vs Adjusted Beta
topic How to Use CAPM for Project Analysis?
topic Calculating Beta of Portfolio after Portfolio Change
topic Question - CAPM and Beta
topic CAPM is Irrelevant to Use
topic CAPM usage by Fund Managers
topic Why Sharp Increase in the Calculation for Betas
topic Are US Treasury Bills still Zero Beta?
👀Calculating Company Beta
topic CAPM Model and Calculating the Inflation Rate?
topic Concept of Marginality and CAPM
🔥 The Fama-French Three-Factor Model
topic Testing CAPM with Individual Stock Returns
Special Interest Group
Knowledge Center

Capital Asset Pricing Model


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