Session 7: The Beta Regression

Podcast: Aswath Damodaran · Aswath Damodaran

Opublikowano: 2026-10-20

This class covered the conventional approach to estimating betas, which is to run a regression of returns on a stock against returns on the market index. We first covered the estimation choices: how far back in time to go (depends on how much your company has changed), what return interval to use (weekly or monthly are better than daily), what to include in returns (dividends and price appreciation) and the market index to use (broader and wider is better). We also looked at the three key pieces of output from the regression: 1. The intercept: This is a measure...