Beta Tutorial

CURRENT BETA:

Bloomberg

TICKER<Equity> DES <Go> displays a company’s description page, including beta (see, eg: BLK <Equity> DES <Go>, the DES page for BlackRock, Inc., below).

Bloomberg Beta

ValueLine Investment Survey

These investment surveys are available from the Value Line Research Center Online database on the Pardee Library’s Business Databases: A-Z list.  To search for the Value Line Investment Surveys for companies, go to Stocks – Premium Content – Lookup Company and search by company, industry or  ticker symbol.

Value Line Beta

Yahoo! Finance

To find a stock’s beta using Yahoo! Finance, input the stock’s ticker symbol and click on the “Key Statistics” link from the left hand tool bar.  Beta will appear on the right hand side of the Key Statistics page.

Yahoo! Finance Beta

HISTORICAL BETA

Bloomberg

TICKER <Equity> BETA <Go> retrieves the company’s beta page (see, eg: BLK <Equity> BETA <GO>, below).

Bloomberg Historical Beta

WRDS

The Center for Research in Security Prices (CRSP) database, available through Wharton Research Data Services (WRDS), may be used to obtain year-end, daily beta.  Instructions follow – to get a WRDS password, click here.

1. After signing on to WRDS, click on the “CRSP” link on the left.

WRDS Beta Step 1

2. From the main CRSP page, click “Indices / Deciles: Portfolio Assignments” on the left.

WRDS Beta Step 2

3. Click “Year-End Beta Daily – NYSE/AMEX.”

WRDS Beta Step 3

4.Choose a date range and enter your stock’s ticker symbol.

WRDS Beta Step 4

5. Choose the variables you want displayed in your search result – at minimum, beta value and DATE.

WRDS Beta Step 5

6. Choose an output format, and hit search.

WRDS Beta Step 6

BETA & CAPM

For more information about beta and asset pricing see:

Falkenstein, Finding alpha : the search for alpha when risk and return break down (Pardee, HG4521 .F35, 2009)

Handbook of the economics of finance (Pardee, HG173 .H345, 2003)

Cochrane, Asset pricing (Pardee, HG4636 .C56, 2001)

Black and Scholes. The Pricing of Options & Corporate Liabilites, Journal of Political Economy; May/Jun 73, Vol. 81 Issue 3, p637

Fama and French. The Cross-Section of Expected Stock Returns, Journal of Finance; Jun 92, Vol. 47 Issue 2, p427-465