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Asset beta split

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Asset beta split

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • August 4, 2018 at 11:18 am #466081
    Avatarhemraj123
    Member
    • Topics: 110
    • Replies: 188
    • ☆☆☆

    Sir, supposing the asset beta for the whole company is provided and asset beta of one division of the business is provided, but it doesn’t mention the proportion compared to the company.

    But the question mentions the amount of debt and equity used by the divisions.

    So is it ok to weigh the asset beta as per the equity distribution between divisions?

    Thanks

    August 4, 2018 at 2:36 pm #466117
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    Yes – that is what you would have to do 🙂

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  • The topic ‘Asset beta split’ is closed to new replies.

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