what is the purpose of ungearing the beta? confused. Home › Forums › ACCA Forums › F9 Financial Management Forums › what is the purpose of ungearing the beta? confused. This topic contains 1 reply, has 2 voices, and was last updated by bridmw 5 years, 10 months ago. Viewing 2 posts - 1 through 2 (of 2 total) Author Posts November 14, 2010 at 5:30 pm jrowParticipant Hi, Can anybody explain the difference between the asset and equity betas and why we ungear the equity (???) beta? much appreciated. November 14, 2010 at 10:16 pm bridmwMember We ungear the equity beta to see the risk that derives solely from the company’s business risk. Asset beta is the ungeared beta. Equity beta includes the gearing – it includes the financial and business risk. Author Posts Viewing 2 posts - 1 through 2 (of 2 total) You must be logged in to reply to this topic.