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In the third last paragraph of question 1 Tramont Co, the word quoted beta is 1.17. Is it right to interpret this as the equity beta to be used for degearing to get the asset beta to be used in the capm formule?
I am at work at the moment anddo not have the paper with me.
However, unless a question says differently, the betas that are quoted (and published in certain magazines) are always the equity betas.
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