The value of beta that is inferred by examining the risk characteristics of similar companies (or the investments/ projects undertaken by such companies) known as pure-play companies. These companies must be publicly traded (exchange-listed) and operate in the same line of business as the proposed investment/ project. The pure play beta is usually estimated in a number of steps: (1) determination of the pure-play companies, (2) ranking the companies according to their similarity to the investment/ project under consideration, (3) elimination of low-rank companies, and (3) averaging the betas of high-rank companies to determine an investment/ project beta. The pure play beta would be used as a proxy for the new investment’s/ project’s beta.