anonymous
  • anonymous
The total beta measure devised by Damodaran measures the the beta of private business owned by undiversified investor. But how do we account for those owned by partially diversified investor? This might be a lazy way to estimate but maybe we can estimate the number of businesses the partially diversified investor has and adjust according to the ratio presented in the table in http://en.wikipedia.org/wiki/Diversification_(finance)? What do you guys think?
Finance
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
katieb
  • katieb
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
anonymous
  • anonymous
To illustrate my point...
1 Attachment
anonymous
  • anonymous
Simple. Estimate the total beta by using the correlation of the private investor's portfolio (which should rise as he or she gets more diversified)
anonymous
  • anonymous
Try www.aceyourcollegeclasses.com for homework help. You can earn money answering questions there too!

Looking for something else?

Not the answer you are looking for? Search for more explanations.

More answers

anonymous
  • anonymous
How would i go about finding the correlation of the private investor's portfolio against the market?
anonymous
  • anonymous
You would have to know what was in the private investor's portfolio in the first place (I thought that was the premise of the question)

Looking for something else?

Not the answer you are looking for? Search for more explanations.