Equity - Blume method beta calc

chowder Wrote: ------------------------------------------------------- > wtf is Blume method? Is Blume in the CFAI curriculum? Not in the index, and at a quick scan on beta stuff, can’t find it.

MarshallB Wrote: ------------------------------------------------------- > chowder Wrote: > -------------------------------------------------- > ----- > > wtf is Blume method? > > Is Blume in the CFAI curriculum? Not in the index, > and at a quick scan on beta stuff, can’t find it. LOS 36d

one of the distractor answers included using the incorrect formula of 2/3+1/3*(beta)… which I unfortunately used because I couldn’t remeber which order was right.

i got stunned when they said BLUME method of calculating beta. I was like “what the hell is that??” But i figured that they should be referrign to the adjusted beta so yeah…0.6667(raw beta)+0.333