You are trying to estimate a beta for Sosa Inc., a Brazilian retail firm. The stock is widely traded and 20% of the shares are held by global investors, who account for 60% of the trading on the stock. It has also depository receipts listed in the US, which are dollar denominated and liquid. Which of the following regressions would you use to estimate the beta?

a. The local listing against the Bove spa, the Brazilian equity index

b. The ADR, against the S&P 500

c. The ADR, against the MSCI, a global equity index

d. The local listing against an index of Brazilian retailers

e. None of the above

Answer rating: 100% (QA)

The detailed answer for the above question is provided below You should use option c The ADR a... View the full answer