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KINDLY ADVICE HOW THE PROXY ASSET BETA FOR MERCURY HAS BEEN CALCULATTED ,MAINLY IN THE ANSWER I SAW 0.67 & 0.33 FOR JUPITER AND FINANCIAL SERVICE ,HOW TO CALCULATE THIS .
From my understanding, the Asset beta is the beta unlevered, and indicates the business risk to the market. For the company, the business activity is revenue generation. so the proportion of revenue generate by each business activity in the company can be seen as the proportion of each corresponding business risk associated. In the case, because financial sector generated one third of total revenue, then it should be the 33% of the total business composition.
That is just my understanding.
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