Beta is a measure of how sensitive a stock's return is to the market's return. It is a key variable in the capital asset pricing model (CAPM), which estimates the expected return of an asset based on its risk and the risk-free rate. How would you estimate beta for privately held companies or startups that are not traded on the market?

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Estimating the beta for privately held companies or startups that are not traded on the market can b... View the full answer