The Butler Pinkerton Calculator: An Update - BVMarketData

Conclusion from Mr. Kasper’s Paper
• “Until the authors provide empirical evidence
that total beta produces better estimates of
actual public company returns…”
– Why would we?
– Mentioned in very first article that the
technique does not do this – Mr. Kasper
missed it!
– CSR is at least partially diversified away for
publicly-held stocks.
• CSR, however, is priced for PRIVATE
companies
• Use Total Beta as a proxy for PRIVATE
companies
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