Suppose we are required to calculate the asset beta of a proxy business, but the proxy has more than 1 business stream, i read in the FM examiners report that we calculate the average asset beta.
How to calculate the avg beta ? Would appreciate if you would explain with an example. Have an exam in few days and i never came across this before
The overall beta when there are two streams is the weighted average o the betas of the individual streams, weighted by the market values of the two streams.
Could you advise what amount should we take in D/E if the question is given “DEBT TO EQUITY is 0.2” So how much will be equity and how much will be debt??