Ungeared beta: Difference between revisions
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imported>Doug Williamson (Clarify.) |
imported>Doug Williamson (Link with Equity beta page.) |
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* [[Asset beta]] | * [[Asset beta]] | ||
* [[Business risk]] | * [[Business risk]] | ||
* [[Equity beta]] | |||
* [[Financial risk]] | * [[Financial risk]] | ||
Revision as of 10:43, 18 April 2015
The observed beta value for a company 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.
