Asset beta: Difference between revisions
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* [[Financial risk]] | * [[Financial risk]] | ||
* [[Ungeared beta]] | * [[Ungeared beta]] | ||
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Revision as of 13:01, 15 August 2014
The beta value for the securities issued by a company which can be observed incorporates both financial and business risk.
The asset 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 asset beta is also called the ungeared beta.
