Question
An analyst is evaluating an offer for an equity stake in a private insurer. She uses Alleghany Company as it s closest public comparable. Alleghany
An analyst is evaluating an offer for an equity stake in a private insurer. She uses Alleghany Company as it s closest public comparable. Alleghany has a Beta of 0.70 and has no debt in its capital structure. The private insurer the analyst is analyzing is funded 20% by debt. What is the estimated beta for the private insurer? (please show work)
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Financial Informatics An Information Based Approach To Asset Pricing
Authors: Dorje C Brody, Lane Palmer Hughston, Andrea Macrina
1st Edition
9811246483, 978-9811246487
