beta is the one of the factor that does not remain stable over time and estimated value is differed from the actual.
Dilemmas to calculating WACC of BHP Billiton and Telstra Corporation
There is an implication envisages the relationship between risk and the expected rate of return on a present risky security market provides a framework to price individual securities and determine the required rate of return for individual company and the implications are-
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they can only estimate beta based on historical data. Investors can use historical beta as the measure of future risk only if it is stable over time. This implies that the betas are poor indicators of the future risk. For all of these
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