Estimating Systematic Risk With Long‐Term Growth Forecasts and Analyst Following
ISSN: 1935-519X
Article publication date: 28 October 1992
Issue publication date: 28 October 1992
Abstract
According to the capital asset pricing model, a stock’s required rate of return is determined by systematic risk, otherwise known as beta. Usually betas are estimated using historic data. It is shown here that future betas have a stronger relationship to analysts’ long‐term growth forecast than to historic betas.
Keywords
Citation
Dowen, R.J. (1992), "Estimating Systematic Risk With Long‐Term Growth Forecasts and Analyst Following", American Journal of Business, Vol. 7 No. 2, pp. 33-38. https://doi.org/10.1108/19355181199200014
Publisher
:MCB UP Ltd
Copyright © 1992, MCB UP Limited