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best beta estimate and historical leverage cost?

Business, Finances and Investing Forum - forumserver.twoplustwo.com
i'm actually curious as to 2 things so i lumped them in here,

i looked into best historical beta (time period, frequency, benchmark etc) and got alot of good insight from this article...

damodaran nyu professor paper FYI.... and bit general but good. of course, makes the very important point that you have to make sure the business is still similar to its historical testing period.

anyway, i'm pretty happy with say 3 or 5 year beta, weekly vs. s&p 500..

but what do you make of page 10 (not numbered pages, but that's what it comes out in my reader)?

i believe the stock is walt disney..... following are its betas (sorry, not sure how far back the beta test period is.... and i assume it's s&p 500 beta but not sure)

Daily 1.33

Weekly 1.38

Monthly 1.13

Quarterly 0.44

Annual 0.77

does this suggest you could sell/buy disney one month strength/weakness as it usually reverses somewhat over next 2 months. i understand the periods won't be the same but seems like monthly to quarterly beta gap is massive...

2nd question (unrelated to 1st):

if i'm doing a historical s&P leverage strategy simulation, what borrowing cost series would you use for a) large credit worthy institution, b) run-of-the mill retail investor (say $400K equity)

thx in advance!
Date: Jul 28, 2014   


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