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schweser PE2 P.53 12.2
the answer says,
"the weighted average asset beta for the plan, assuming debt securities have zero beta,
is usually less than that for the sponsoring firm's operating assets, so combining the firm's and plan's assets usually produces a lower WACC."
plan's beta is usually less than firm's operating beta ?
Is this usually the case ?
CFAI R22 Table3 represents
"operating assets beta is 0.36, while pension assets beta is 0.60..." |
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