Asset beta split

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August 4, 2018 at 11:18 am #466081
hemraj123
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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
John Moffat
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Yes – that is what you would have to do 🙂
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