ROSHNI
asked
3
0
Answer Now
Comment
Report
8
Answers
Pankaj
answered
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.
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below –
For any questions Request A Call Back
HIMANSHU
answered
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
> 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
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
**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
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
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
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
