In globally integrated markets, it makes little difference whether the ß is calculated by regressing the target firm's (or a similar firm's) historical returns against the returns for a broadly defined global index, U.S. equity market index, or a broadly defined equity index in the target's country.

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In globally integrated markets, the correlation between returns of different markets is high, making it less important which benchmark index is used to calculate beta. Therefore, it makes little difference whether the beta is calculated using a global index, U.S. equity market index, or a local equity index.

In Globally Integrated Markets, It Makes Little Difference Whether the ß