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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Beta in CAPM
I Know that Beta In capm is a measure of the systematic risk but what is Equity beta and Asset beta? are they sub branches of systematic risk?
The asset beta measures the systematic risk of the business.
Equity is more risky because of gearing within the company – the gearing increases the systematic risk – and the equity beta measures the systematic risk of the shares.
All this is explained in my free lectures (and the lectures for F9 also, because this is revision of F9).
Thanks sir
You are welcome 🙂