Measuring, Adjusting, And Forecasting Beta: The Case Of All The Lebanese Listed Firms

Abstract

Beta is commonly used in many publications as a measure of risk of an investment or as an index for safety. Such a risk assessment has never been done for the Lebanese stock market. This paper presents the alternative types of models for estimating future correlation coefficients and the sources of their forecast errors. Betas of all the Lebanese listed firms are measured and a special tailored adjustment technique is conceived to fit their constraints.