Why are the values for Beta different?
You have noticed that Yahoo!, Bloomberg, and Wall Street Research Net all have different values of Beta for Dell. How is this possible for such a difference to exist? The answer lies in how the various sites calculate Beta. Bloomberg Beta: Bloomberg calculates beta using 36-60 months of returns (it doesn’t say whether it includes dividends when calculating returns). It uses the S&P 500 as the market index. Yahoo! (MarketGuide) Beta: The Market Guide Beta uses 60 months of returns, defined the percentage price change (it ignores dividends when calculating returns). It uses the S&P 500 as the market index. Beta values are not calculated if less than 24 months of pricing is available. WSRN Beta: The 60-Month Beta uses total returns (which includes dividends) the 36-Month Beta uses percentage price changes (it ignores dividends). It uses the S&P 500 as the market index. A minimum of 12 monthly returns is required for this calculation. Despite the similarity in the way that these sources ca
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