ACCA December Exams

Post comments & Vote in Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March 2025 exams.
Get your discount code >>

Q1 december 2012

This topic has 1 reply, 2 voices, and was last updated 11 years ago by brithel1.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
May 21, 2013 at 9:26 pm #126580
carl29
Member
- Topics: 14
- Replies: 245
Asset beta for the co is 0.61
Asset beta for hotel services = 0.61 x 60%
+ industry beta 0.4 x 40%
Gives beta 0.75 in the answer, surely its 0.53?
Why is it 0.75?
May 26, 2013 at 2:35 pm #127225
brithel1
Member
- Topics: 3
- Replies: 14
0.61=Asset Beta(hotel services)*60%+0.4*40%
Let Asset Beta (hotel servises be) x
Now ; 0.61= x*60%+0.4*40%
0.61=0.6x+0.16
0.61-0.16=0.6x
0.45=0.6x
0.45/.6=x
0.75 = x
Hope that helped Carl29
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.