Blume adjustment vs. Adjusted Beta

Are these two different or the same?

The same, unless you’re talking about adjusting beta via pureplay method.

Is the formula:

1/3 + 2/3(historical beta)

yes it is the same. pure play includes D/E ratio.

I think both are same.

You guys are awesome, thank you.

I guess, Blume is the person’s name who developed this model of adjusted beta. So it’s also cladded Blume’s adjusted beta.

Might be a tall order but would anyone have a list of all the theorists and perhaps the formulas or concepts associated with them?


Blume: 1/3 + 2/3 (Beta)

Ibbotson-Chen : ((i-i)(1+PEg)(1+rEg)-1 ) + Y - Rf

Taylor rule : i= Rn + pi + a (pi-pi*) + b (y-y*)

Modolovsky effect==­­> countercyclical tendency for PEs

Modigliani-Miller II w/tax : re = ro + (ro-rd) (D/E) (1-T)

Black-Scholes-Merton: …ah never mind

But seriously if someone has that kind of list, please post or send…for those of us not good with names :wink: