TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

STOCK BETA [1 record]

Record 1 1989-07-13

English

Subject field(s)
  • Investment
CONT

Annual data for 637 manufacturing firms were used to show how asymmetric information in capital markets affects the financing of investment. The data, obtained from the Value Line Data Base for 1975-1985, were adjusted to real terms by dividing by the relevant price deflators. The estimated equity betas from the database were used to implement the capital asset pricing model (CAPM) utilized in the study. The data were adjusted to asset betas, and Moody's Aaa bond rate was used as the risk-free rate.

Key term(s)
  • stock beta

French

Domaine(s)
  • Investissements et placements

Spanish

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