Stability and predictive ability of beta

The purpose of this paper is to examine the stability and predictive abilities of the beta coefficients of individual equities in the Finnish stock market. As beta is widely used in several areas of finance, including risk management, asset pricing and performance evaluation among others, it is important to understand its characteristics and find out whether its estimates can be trusted and utilized.

Tämän työn tarkoitus on tutkia Beta-kertoimen stabiliteettia ja ennustavuutta suomalaisten osakkeiden osalta. Koska Beta on tärkeä osa rahoituksen kenttää, on tärkeää ymmärtää sitä sekä tutkia voiko siihen luottaa.