Asset beta: Difference between revisions
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imported>Doug Williamson (Clarify.) |
imported>Doug Williamson (Layout.) |
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The asset beta is also called the ungeared beta. | The asset beta is also called the ungeared beta. | ||
== See also == | == See also == | ||
Revision as of 15:55, 11 May 2016
The observed beta value for the securities issued by a company 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.
