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What is PROXY BETA

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 ROSHNI asked about 3 years ago

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8 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Pankaj answered almost 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.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 HIMANSHU answered almost 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.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered almost 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.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered almost 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.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered about 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

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Picsjoin 2017224123730582 Archana answered about 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.

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Data?1494421738 samkit kothari answered about 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.

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Data?1494421730 rohit awasthi answered about 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

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