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Beta's

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Beta's

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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  • November 26, 2018 at 6:57 pm #486047
    maxpopper
    Member
    • Topics: 177
    • Replies: 132
    • ☆☆☆

    Sir,

    a) Does geared company have asset beta?

    b) All equity financed company’s equity beta will be the same asset beta?

    c) For debt holders can a word investor be used or is it more appropriate to use word lender?

    November 27, 2018 at 8:21 am #486096
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    a) every company has an asset beta!!

    b) Yes – if there is no gearing then the equity beta is equal to the asset beta

    c) You can use either word – they mean the same

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