Estimating the equity beta


Response to the following problem:

A security analyst has regressed the monthly returns on Berkshire Hathaway equity shares over the past five years against those on the Standard & Poor's 500 stock index over the same period. The resulting regression equation is rBH = 0.04 + 0.72rSP.

Use this equation and any other information you deem appropriate to estimate Berkshire Hathaway's equity beta.

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Financial Accounting: Estimating the equity beta
Reference No:- TGS02118323

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