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An all-equity firm is worth $400 million and has an unlevered beta of 1.5. The firm issues $100 million of new equity and invests the
An all-equity firm is worth $400 million and has an unlevered beta of 1.5. The firm issues $100 million of new equity and invests the proceeds in US Treasury bills that mature in 90 days. What is the new beta of the firm?
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