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mercury training(6/08)

Sstudent0711y ago
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
John MoffatJohn MoffatTutor11y ago#1
Yes - that is the reason :-) We weight the betas by the proportions in each business sector.
Sstudent0711y ago#2
Thank you sir.
John MoffatJohn MoffatTutor11y ago#3
You are welcome :-)
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