Elfu Co

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September 3, 2019 at 11:04 am #544459
toushiga
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Sir,for PYQ June 2012
part (a)
The proportion of the asset beta of Elfu Co is just based on the percentage of the equity finance respectively? ie.for asset beta of other activities is 75% as the Elfu Co ‘s equity finance proportion to other activities?

Thank you.
September 3, 2019 at 2:10 pm #544489
John Moffat
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Yes. The examiner has taken the view that it is the equity that is suffering the risk.
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