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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › mercury training(6/08)
Sir could you please tell me for calculating average beta from where did we get the figure .67 and .33. Is it because the question says the business accounts one third of the company total revenue and because jupiter only involves training so it cannt take one third so two third will go to jupiter n one tjird to Fs sector.
Thanks
Yes – that is the reason 🙂
We weight the betas by the proportions in each business sector.
Thank you sir.
You are welcome 🙂