Why does the equity beta of a levered firm differ from the beta of its assets?

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Corporate Finance

ISBN: 9780132992473

3rd Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Mar 07, 2024 01:00 AM

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Why does the equity beta of a levered firm differ from the beta of its assets?

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The equity beta of a levered firm often referred to simply as beta differs from the beta of its assets also known as unlevered beta due to the impact ...View the full answer

Corporate Finance

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