Business Studies

A project has an equity beta of 1.2 and debt beta of 0. This project is finance by combination of $$30\%$$ debt and $$70\%$$ equity, then project beta is _______.


ANSWER

0.84


SOLUTION
$$\beta_p$$ = $$\frac{{\beta equity X E}}{D + E}$$ + $$\frac{{\beta debt X D}}{D + E}$$.
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Single Correct Medium Published on 18th 08, 2020
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