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The Engineering Economist
A Journal Devoted to the Problems of Capital Investment
Volume 34, 1988 - Issue 1
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ARTICLES

Application of the Bootstrap to Assess the Precision of Industry Risk Measures

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Pages 51-60 | Published online: 29 Oct 2007
 

ABSTRACT

A recent contribution In the finance literature presents a goal programming solution to the problem of estimating the systematic risk (beta) of an operating division. The estimation problem is difficult, but the necessity of a reliable risk estimate is undeniable for sound capital budgeting decisions. This paper describes a method Introduced recently In the statistics literature for assessing the precision of the estimator.

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