Question re: Beta
How far back to bankers typically go when calculating beta? Also, weekly or monthly?
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Depends what beta they need to show the valuation they want.
Beta is usually over a period of 5 years.
We normally use a 5-yr beta regressed against the Dow Jones Total Stock Market Index and calculated on a weekly basis.
Total Stock Market, rather than S&P? Do you still use size premiums?
Nope, no size premiums.
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