Unforseen

equity beta is constant.. it is the other way around.

now with equity beta constant - because of the pension plan assets - your operating assets beta (risk) reduces.

so now with that - you are better positioned to give the risk its due. without that - your operating assets are too risky, higher beta, higher WACC... (traditional without pension assets).

with inclusion of pension assets - operating assets beta is lower - so WACC is more reasonable for all your projects evaluation...

pension plan risk needs to be included appropriately to the pension assets - not to the operating assets .

CP