Breen, William J.; Lerner, Eugene M. - In: Bell Journal of Economics 3 (1972) 2, pp. 612-621
Public utility requires that a firm's rate of return be linked to its risk, and some analysts have urged that Beta be used as the appropriate measure of risk. This study explores the use of Beta in regulatory proceedings and finds it wanting. Empirical measures of Beta are known to depend on (1)...