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(a) The beta equity of a construction company is 1.80 and the beta asset of the construction company is 1.3. Explain the meaning behind an
(a) The beta equity of a construction company is 1.80 and the beta asset of the construction company is 1.3. Explain the meaning behind an equity beta of 1.80 and state why the beta equity of the company is greater than its beta asset. (4 marks) (b) Explain the three factors that influence the computation of the beta equity of the construction company (6 marks).
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