This is my final paper! I just need a couple paragraphs for each! 1) When regressing Beta...

70.2K

Verified Solution

Question

Finance

This is my final paper! I just need a couple paragraphs foreach!
1) When regressing Beta manually, you could use daily,weekly, and monthly stock data. Which do you recommend using? Whatthings do you need to consider when making your choice of whichtime frame to use? What are the issues that can happen when usingeach of the 3 time frames?
2) When we discussed relative valuation we introducedthe ratios P/E, P/S and P/B. Knowing that P/E is the most commonlyused of the 3, why would someone choose to use P/S or P/B invaluation? Give as many situations as possible to illustrate yourknowledge of relative valuation.
3) Explain the winnerâ€™s curse phenomenon and how itaffects IPO pricing. Give an example with numbers ifpossible.

Answer & Explanation Solved by verified expert

4.0 Ratings (675 Votes)

1 While regressing Beta it is very important to consider the time frame under consideration If the time frame under consideration is say 5 years or more one can take the monthly stock returns as the data available is statistically significant and more or less normalized over the time period However if the See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member