Build your professional network on facebook via our app Go to app
 
<< Prev  9 of 9 in Topic 
Topic : Project Management 2.0
  Rate : 
 

whether un-leavering the beta is necessary

Created by : Chandra Prakash Singh, Financial Analyst, MITCON Consultancy Services Ltd.  | 04 29 2009 05:32:45 +0000
Industry : Equity Research/AnalyticsFunctional Area : Capital Management(Corporate Finance)
Keywords : beta calculation
Activity:  280 views;  last activity : 07 06 2010 20:18:09 +0000

dear freinds,

whilie calculating the expected rate of Reture under CAPM model, Beta is one of the important factor to calculate. i want to calculate the return of power sector under this model. for calculation of Beta i have used BSE - 500 and POwer Index (of BSE). i am comparing this return to my project return. but somebuddy suggested me that u shoud unleaverd the Beta with Debt Equity ratio of the respective Companies, means i should calculate the Beta of each company of Power Index and unleaver it with its Debt equity ratio and then weighted average beta of these companies will be the final Beta of the Power Index.

tell me what should i do ??

whether simple Beta Calculation is O.K. or i need to calculate the Weighted Average Unleverd Beta of the Poaer Index.

  
Share
 
 
  Rate : 
 
 
Simple Beta Calculation Vs Unlevered Beta Calculation
2
 
 
 
 
0
1
0
Support   Support
 
0
0

i think the simple Beta calculation will be O.k., as we are calculating the Beta for a particular sector, i.e. Power Sector.
By Chandra Prakash Singh, Financial Analyst, MITCON Consultancy Services Ltd.  | 04 29 2009 05:32:45 +0000
Argue for "Simple Beta Calculation"
Argue for "Unlevered Beta Calculation"
 Found the debate "whether un-leavering the beta is necessary "  interesting ?  Suggest to your connections and communities  
 
Viewers also viewed
women only have an adjusting type to handle the administration vs Man can able take correct...
 
1639 referals 24 arguments, 315 views
Its necessary for success. vs Corruption is not necessary for success at all
 
768 referals 19 arguments, 878 views
No vs Yes
 
1584 referals 33 arguments, 709 views
more...  
Recent Knowledge (2)
MNC's should take in more freshers vs Do not take freshers
 
1 referals 2 arguments, 171 views
more...  
Sponsored Jobs
 
  • Popular Knowledge
  •  
  •  
  • Popular Jobs
  •