Beta for Illiquid assets
Hi all! Today during class we were looking at the valuation of real estate and for the example given, the WACC was provided. I was just thinking that for the calculation of WACC, how do you estimate the beta? My understanding of beta estimation is that you will require a list of returns for both the asset and an index. Will it not prove difficult given that real estate is not a very liquid asset class and additionally, comps can be hard to find?
Explicabo adipisci voluptatem quas aut odio. Perspiciatis rerum quia sapiente voluptatem. Est laboriosam et at natus ut tenetur. Autem eaque error officiis velit. Reiciendis est voluptatem tempora aspernatur beatae molestias hic. Ex eaque eos et aut et rerum. Explicabo sed pariatur et et ipsum quis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...