CFA Mock 2012 - Q55 AM - Unlevered beta

companies, question, getting

Hi guys
This question requires us to CALCULATE the unlevered beta then lever it. The LOS for this doesnt state calculate but it is
” Explain beta estimateion for public companies, thinly traded public companies and nonpublic companies.
Why are they getting us to calculate this then?

optiix

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2^#

发表于 2013-4-22 06:50 | 只看该作者

Its in the material, its fair game.

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Iginla2010

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3^#

发表于 2013-4-22 06:51 | 只看该作者

it may be that this question was taken from a prior year mock/sample/exam when the unlevering and relevering of beta calc was part of the LOS. It’s not particularly difficult to re-lever beta so learning the calc may help you understand the concept and eventually “explain” it.

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sameeragarwal

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发表于 2013-4-22 06:51 | 只看该作者

youre thinking of M&M. Taxes do not affect Beta.

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Zestt

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发表于 2013-4-22 06:51 | 只看该作者

I will revise my statement. In CFAI world, tax shield does not affect Beta. Question is correct (pg 78 Equity)

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Wendy01

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发表于 2013-4-22 06:52 | 只看该作者

Wasn’t the calculation at level 1 also? Based on this its fair game right? Regardless given they put it on the mock the chances of it showing up Saturday are…yea you do the math.

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ShooterMcCFA