How to reconcile the two estimates


A prominent beta estimation service reports the beta of Comcast Corporation, a major cable TV operator, to be 1.45. The service claims to use weekly returns on the stock over the prior five years and the NYSE composite as the market index to estimate betas. You replicate the regression using weekly returns over the same period and arrive at a beta estimate of 1.60. How would you reconcile the two estimates?

Solution Preview :

Prepared by a verified Expert
Finance Basics: How to reconcile the two estimates
Reference No:- TGS0557512

Now Priced at $10 (50% Discount)

Recommended (90%)

Rated (4.3/5)