Equity - Blume method beta calc

[barthezz]

MarshallB Wrote:
——————————————————-
> chowder Wrote:
> ————————————————–
> —–
> > wtf is Blume method?
>
> Is Blume in the CFAI curriculum? Not in the index,
> and at a quick scan on beta stuff, can’t find it.
LOS 36d

 

[L2lifer]

one of the distractor answers included using the incorrect formula of 2/3+1/3*(beta)… which I unfortunately used because I couldn’t remeber which order was right.

 

[HydrogenRainbow]

i got stunned when they said BLUME method of calculating beta. I was like “what the hell is that??” But i figured that they should be referrign to the adjusted beta so yeah…..0.6667(raw beta)+0.333