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CAPM Steps in Calculating Asset Beta

What are the steps in calculating the Asset beta in the CAPM for purposes of calculating the cost of capital for a project?

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Beta measures a stock's volatility, the degree to which its price fluctuates in relation to the overall market. In other words, it gives a sense of the stock's market risk compared to the greater market. Beta is used also to compare a stock's market risk to that of other stocks. Investment analysts use the Greek letter 'ß' to represent beta. ...

Solution Summary

This solution provides the steps to calculate asset beta in the CAPM.