Sir,
In the above mentioned question why is it that the asset beta of Thrillal Inc has been kept taken as the asset beta for Sleepon Inc.
Sleepon Inc does not only work in the Theme Park industry but Hotel Industry as well.
Shouldn't the asset Beta be different from that of Thrillal Inc?
Or is that we are trying to comment on the current project and that is why we have considered Thrillal asset beta .
Is there an assumption which is bieng missed or some requirements which I am unable to understand.
Do let me know
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Sleepon Hotel (Dec 2005)
8y ago#1We need the asset beta of the new project, which is hotels. So we use the asset beta of a similar business in hotels.
I do suggest that you watch my free lectures on CAPM where I explain this.
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