Session 11: Estimating Hurdle Rates - More on bottom up betas

แชร์
ฝัง
  • เผยแพร่เมื่อ 14 มิ.ย. 2024
  • Examine how to estimate betas for emerging market companies and private businesses.

ความคิดเห็น • 11

  • @yangorbachev9960
    @yangorbachev9960 4 ปีที่แล้ว +18

    After every lesson when you say "thank you for listening" I reply aloud "Thank you professor"

  • @dollarbill8959
    @dollarbill8959 3 ปีที่แล้ว +4

    β = σ(Share) / σ(Market Portfolio) x corr(Share, Market Portfolio),
    with that formula it is easier to understand the R-squared adjustment.

  • @tranhuutruong
    @tranhuutruong 3 ปีที่แล้ว +1

    Thanks a lot professor!

  • @AlexVoxel
    @AlexVoxel 3 ปีที่แล้ว

    Great lesson, thank you

  • @ankitdebnath4247
    @ankitdebnath4247 2 ปีที่แล้ว +1

    How does a difference between 10-year treasury bond rate and a 10-year TIPS rate get an accurate value of Inflation? Did not understand the logic behind it

  • @erikmarius
    @erikmarius 5 ปีที่แล้ว +1

    Hi, can there be something between the two extremes: a fully diversified investor and an investor invested in a single asset, and should/could you tweak the Beta/Cost of Equity to reflect a degree of diversification and its effect on Cost of Capital?

  • @shivkuma100
    @shivkuma100 5 ปีที่แล้ว +1

    If the private owner could diversify their overall portfolio and this business is a small fraction of their total holdings, would the beta be lower?

    • @alokkanchanapally
      @alokkanchanapally 5 ปีที่แล้ว

      Depending on the kind of diversification, yes

    • @dollarbill8959
      @dollarbill8959 3 ปีที่แล้ว

      You should use a total risk measure anytime you do not diversify your own portfolio. For example, If you invest in one single company, either private or public, you should require the total risk return.

  • @ibrahimzaid9439
    @ibrahimzaid9439 2 ปีที่แล้ว

    Thx

  • @macharlapavanteja5634
    @macharlapavanteja5634 4 ปีที่แล้ว +1

    why is a publicly traded company expected to diversify its business