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Overall beta

This topic has 1 reply, 2 voices, and was last updated 12 years ago by John Moffat.

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November 16, 2012 at 9:32 am #55377
nomantufail
Member
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Is the overall beta means same as the equity beta ?
I think of it as the “equity equals assets plus liabilities” so overall beta must be the equity beta
Thanks and regards
November 17, 2012 at 8:53 pm #107625
John Moffat
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‘Overall beta’ is not a standard term. You will have to tell me which question you saw it in because it depends on the context.
(Your way of thinking is not valid – the only reason shares have a higher beta (equity beta) is due to gearing.)
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