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After some work, I have found several comparable firms and calculated their asset betas. The average of those betas indicates an industry average asset beta
After some work, I have found several comparable firms and calculated their asset betas. The average of those betas indicates an industry average asset beta of .875. If my firm is all-equity financed, what is my firm's equity beta?
A) .875 | |
B) | 0.998 |
C) | 21.42 |
D) | 1.1 |
E) | 0 |
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