Ungeared beta: Difference between revisions
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imported>Doug Williamson m (Spacing 14/8/13) |
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The beta value for a company which can be observed incorporates financial and business risk. | The beta value for a company which can be observed incorporates financial and business risk. | ||
The ungeared beta is calculated from the observed beta; to reflect the beta value which would be observed if the company were all equity financed. It is therefore indicative of the business risk of the company. | |||
The ungeared beta is calculated from the observed beta; to reflect the beta value which would be observed if the company were all equity financed. | |||
It is therefore indicative of the business risk of the company. | |||
The ungeared beta is also called the asset beta. | The ungeared beta is also called the asset beta. | ||
== See also == | == See also == | ||
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* [[Business risk]] | * [[Business risk]] | ||
* [[Financial risk]] | * [[Financial risk]] | ||
Revision as of 11:13, 14 August 2013
The beta value for a company which can be observed incorporates financial and business risk.
The ungeared beta is calculated from the observed beta; to reflect the beta value which would be observed if the company were all equity financed.
It is therefore indicative of the business risk of the company.
The ungeared beta is also called the asset beta.
