The beta used in financial modelling in frontier markets presents us with one of the biggest challanges. It is also difficult to explain the issue. Take a look at this chart used to determine the beta for Nigeria. The best fit line is almost arbitary, meaning we can't trust the resulting beta.
Thursday, 16 October 2008
Something for the technically minded
The beta used in financial modelling in frontier markets presents us with one of the biggest challanges. It is also difficult to explain the issue. Take a look at this chart used to determine the beta for Nigeria. The best fit line is almost arbitary, meaning we can't trust the resulting beta.
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