pawn

Damil
assets beta change when we change allocation of penstion fund, firm risk also change however the equity beta never change…
Now company has to rebalance the right side of balance sheet because of changing in beta of left side
to rebalance the right side, they have to issue new debts/stocks or pay debt or repurchase stock… - total value of firm assets changes - A incorrect
However, if they choose to converse debt to stock…total assets unchanged