- This topic has 2 replies, 2 voices, and was last updated 6 years ago by
.
Viewing 3 posts - 1 through 3 (of 3 total)
- Posts
I understand that we can use the normal CAPM formula ‘backwards’ to calculate the equity beta.
14% = 4.5% + Beta x 4%.
The gives an equity beta of 2.375.I am struggling to get Equity Beta of 2.375. Please can you explain or degear the below equation in few steps in order to get 2.375 Be?
14% = 4.5% + Beta x 4%. = 2.375?Sorry! I got the answer
14% = 4.5% + Beta x 4%
(14% – 4.5%) = 4%Beta
9.5%/4% = 2.375
Viewing 3 posts - 1 through 3 (of 3 total)
- The topic ‘FUBUKI Co – CAPM backwards ??’ is closed to new replies.