What Is The Difference Between Asset Beta And Equity Beta?

1.	What Is The Difference Between Asset Beta And Equity Beta?
Answer» The asset beta is the unlevered beta which HOLDS no risk to the LEVERAGE that the asset may HOLD. On the other side, when the beta is calculated by looking into the beta of other company, you OBTAIN your levered beta. The mere thing left to do is to de-lever the beta. The asset beta is the unlevered beta which holds no risk to the leverage that the asset may hold. On the other side, when the beta is calculated by looking into the beta of other company, you obtain your levered beta. The mere thing left to do is to de-lever the beta.

Answer»

The asset beta is the unlevered beta which HOLDS no risk to the LEVERAGE that the asset may HOLD. On the other side, when the beta is calculated by looking into the beta of other company, you OBTAIN your levered beta. The mere thing left to do is to de-lever the beta.

The asset beta is the unlevered beta which holds no risk to the leverage that the asset may hold. On the other side, when the beta is calculated by looking into the beta of other company, you obtain your levered beta. The mere thing left to do is to de-lever the beta.

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