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
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;
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
DOI :
10.1109/WiCom.2008.2328
