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CFAI tex book SS-5 page 484
Can someone help me in understanding how is Risk Beta of 0.36 is calculated?
Facts :
Firm equity 21 - Beta 2
Firm Debt 19 - Beta 0
pension Asset - 46
pension Liab - 46.
Pension assets are invested 60% in equity ( Assume beta 1) and 40% in debt (Beta0).
Text books calculates Operating beta for $ 40 as 0.36. I have tried but cant come to this number. Can someone help please… |
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