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Estimating Systematic Risk With Long‐Term Growth Forecasts and Analyst Following

Richard J. Dowen

American Journal of Business

ISSN: 1935-519X

Article publication date: 28 October 1992

Issue publication date: 28 October 1992

157

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

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