ROSHNI
asked over 3 years ago
Pankaj
answered over 3 years ago
Proxy Beta is used when the firm has no market listing and thus no Beta of its own. In that case we take the help of comparable listed firms and make necessary adjustments as required relative to the financial gearing levels.It is better to take average of two or more the two companies for calculating Proxy Beta.
HIMANSHU
answered over 3 years ago
Hie Roshni Proxy Beta is used when the firm has no market listing and thus no Beta of its own. In that case we take the help of comparable listed firms and make necessary adjustments as required relative to the financial gearing levels.It is better to take average of two or more the two companies for calculating Proxy Beta.
CA Sandeep Bohra
answered over 3 years ago
> PROXY BETA --A broad representation of the overall market. A market proxy is chosen and used to simplify studies that require a market variable, statistic or comparison. The market proxy, once selected, is then used in performance evaluations and studies, or to test a hypothesis. --Proxy Beta is used when the firm has no market listing and thus no Beta of its own. It is taken from a comparable listed firm, and adjusted as necessary for relative financial gearing levels, Hence Proxy Discount Rate. -- every proxy for the market would need to be unique, according to what is being traded or measured. For example, the S&P 500 could be used as a market proxy when evaluating the excess returns of a fund manager only using stock from the S&P 500. A different proxy would be needed, however, to assess a manager trading in futures or using fixed-income arbitrage.
narahari
answered over 3 years ago
A broad representation of the overall market. A market proxy is chosen and used to simplify studies that require a market variable, statistic or comparison.
lochan
answered over 3 years ago
**PROXY BETA** when the firm has no market listing and thus no Beta of its own PROXY BETA is used. It is taken from a comparable listed firm, and adjusted as necessary for relative financial gearing levels, Hence Proxy Discount Rate. Thanks
Archana
answered over 3 years ago
Hie Roshni, **Definition of Proxy Beta :-** Proxy Beta is used when the firm has no market listing and thus no Beta of its own. It is taken from a comparable listed firm, and adjusted as necessary for relative financial gearing levels, Hence Proxy Discount Rate.
samkit kothari
answered over 3 years ago
A broad representation of the overall market. A market proxy is chosen and used to simplify studies that require a market variable, statistic or comparison. The market proxy, once selected, is then used in performance evaluations and studies, or to test a hypothesis.
rohit awasthi
answered over 3 years ago
Hello roshni "Proxy Beta" Proxy Beta is used when the firm has no market listing and thus no Beta of its own. In that case we take the help of comparable listed firms and make necessary adjustments as required relative to the financial gearing levels.It is better to take average of two or more the two companies for calculating Proxy Beta. Thanks
