tarik64

Ah just found the formula beat for firm = asset beta*(1+D/E)
using this you get
1 = X (1+9/21) solving for x gives 0.7
using this with the pension assets you get
1 = X (1+ (9+15)/21) = 0.4667 as the total asset beta.
Using logic listed above this means operating asset beta equals 0.4.
so both methods should give same answer.