june 12 question 4 tisa co.Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › june 12 question 4 tisa co.This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts May 31, 2014 at 10:05 pm #172230 sanjeebMemberTopics: 4Replies: 1☆Hi,how it calculated the below in model answer:total asset beta= component asset beta x 0.25+ other activity asset beta x 0.75.where did the 0.25 (&0.75) came from as I could not figure out in the question.thank you in advance. June 1, 2014 at 1:27 pm #172339 John MoffatKeymasterTopics: 57Replies: 54480☆☆☆☆☆It is because 75% of their equity is invested in other activities (and therefore 25% in component production). The overall asset beta is the weighted average of the individual asset betas.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In