John, I am having issues following how the calculated the Asset Beta to be used.
Specifically the last step where the computed the "Component Asset Beta". Not sure where they got the 25% and 75% from.
regards
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June 2012 Q4 A
10y ago#1It is because the question says that 75% of the equity is attributed to other activities and therefore 25% is components.
The overall asset beta is then the weighted average of the individual betas.
Thanks or the response. it was steering me right in my face all the time.
10y ago#3No problem :-)
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