DocumentCode
3467413
Title
The Effects of Market Weights on Betas and Cost of Capital
Author
Du Changchun ; Hui Xiaofeng ; Guo Mingshan
Author_Institution
Sch. of Manage., Harbin Inst. of Technol., Harbin
fYear
2008
fDate
12-14 Oct. 2008
Firstpage
1
Lastpage
4
Abstract
This paper analyzing the case of Sinopec, we study the relationship of beta between market weight of the listed companies and the beta of the residual portfolio. The result shows that the market weight and the cost of capital changes in the same way. But the relation of the market weight and the beta of the residual portfolio changes in a reverse way. The market weights influence the beta, and lead to a reduction in estimates of the cost of capital for small cap firms.
Keywords
investment; Sinopec; capital cost; market weights; residual portfolio; Costs; Paper technology; Portfolios; Pricing; Reactive power; Risk analysis; Risk management; Stock markets; Technology management;
fLanguage
English
Publisher
ieee
Conference_Titel
Wireless Communications, Networking and Mobile Computing, 2008. WiCOM '08. 4th International Conference on
Conference_Location
Dalian
Print_ISBN
978-1-4244-2107-7
Electronic_ISBN
978-1-4244-2108-4
Type
conf
DOI
10.1109/WiCom.2008.2328
Filename
4680517
Link To Document