I have a small thing to ask about anatra asset beta is 0.68
When taking combined asset beta they take whole of 0.68 and multiply with anatra equity
When I was solving I was breaking it 0.68 for medical r&d and equipment .as I considered it to b the total anatra business risk and since one component is unbundled and only medical is absorbed for cigno ....there in qs it said anatra co asset beta is 0.68
I m getting different answers
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Qs 71 bpp ..cigno
7y ago#1The question says that the asset beta will be the weighted average of the two asset betas - it makes no mention of the betas changing because of the unbundling. (Also, there is not enough informations to do what you are suggesting)
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