Beta as a Random Coefficient

B-Tier
Journal: Journal of Financial and Quantitative Analysis
Year: 1978
Volume: 13
Issue: 1
Pages: 101-116

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

After Markowitz [14, p. 100] and Sharpe [19, 20] suggested estimating the beta systematic risk coefficient for market assets, finance professors, stock brokers, investment managers, and others began expending large quantities of resources each year on estimating betas. Unfortunately however, it appears that the ordinary least-squares (OLS) regressions used in nearly every instance may be inappropriate. This paper suggests that many stocks' beta coefficients move randomly through time rather than remain stable as the OLS model presumes.

Technical Details

RePEc Handle
repec:cup:jfinqa:v:13:y:1978:i:01:p:101-116_00
Journal Field
Finance
Author Count
2
Added to Database
2026-01-25