A mathematical view of the Butler Pinkerton Calculator

BVWireIssue #92-4
May 19, 2010

Gary Schurman (Applied Business Economics) discusses the derivation of the theory behind the Butler Pinkerton Calculator in his article, “Derivation of The Butler-Pinkerton Model”. Schurman presents the financial theory behind a private company beta (also known as total beta or adjusted total beta) to account for sub-optimal diversification (no diversification or partial diversification).  Click here for the free analysis—it’s the first download in the “articles” list.
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