Home › CA Final › strategicfinancialmanagement › Business Valuation › An unlisted firm's beta is best estimated by:
An unlisted firm's beta is best estimated by:
AUsing its own historical price returns directly
BSetting beta equal to 1 by convention
CUnlevering and relevering the beta of comparable listed firms
DComputing beta from accounting earnings volatility only
Answer & Solution
Correct answer: C. Unlevering and relevering the beta of comparable listed firms
1. Identify what the question asks: this concept maps to unleveredbeta (§4.3).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (C).
_Source: ICAI BoS CA Final Paper 2, Ch 13 "Business Valuation"_
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