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The capital asset pricing model is a model that allows to determine the theoretical rate of asset returns required by an investor, given the asset systematic risk or market risk.

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CAPM with thinly traded companies

I have a company that I want to value that is very thinly traded. Its stock has been very erratic. Doing a regression gives me a beta of 0.52 (std. err. 0.43). In other words useless. What is the bes …
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1 vote
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How reliable is beta as a measure of risk when investing lwith a long horizon

Beta is used in the CAPM to estimate a company's cost of capital, hence determining its market valuation. …
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