Consider the following airline industry data from mid$-2009$:

a$.$ Use the estimates in table

to estimate the debt beta for each firm $($use an average if multiple ratings are listed$).$

b$.$ Estimate the asset beta for each firm.

c$.$ What is the average asset beta for the industry, based on these firms?

a$.$ Use the estimates in table $$ to estimate the debt beta for each firm $($use an average if multiple ratings are listed$).$

The beta of the debt for each company is: $($Round to three decimal places.$)$

By rating A and above BBB BB B CCC

Average beta $<mtext\; id="EditorElement\_1242175"></mtext><mn\; id="EditorElement\_1242176">0</mn><mn\; id="EditorElement\_1242177">.</mn><mn\; id="EditorElement\_1242178">0</mn><mn\; id="EditorElement\_1242179">5</mn><mtext\; id="EditorElement\_1242180"></mtext><mn\; id="EditorElement\_1242181">0</mn><mn\; id="EditorElement\_1242182">.</mn><mn\; id="EditorElement\_1242183">1</mn><mn\; id="EditorElement\_1242184">0</mn><mtext\; id="EditorElement\_1242185"></mtext><mn\; id="EditorElement\_1242186">0</mn><mn\; id="EditorElement\_1242187">.</mn><mn\; id="EditorElement\_1242188">1</mn><mn\; id="EditorElement\_1242189">7</mn><mtext\; id="EditorElement\_1242190"></mtext><mn\; id="EditorElement\_1242191">0</mn><mn\; id="EditorElement\_1242192">.</mn><mn\; id="EditorElement\_1242193">2</mn><mn\; id="EditorElement\_1242194">6</mn><mtext\; id="EditorElement\_1242195"></mtext><mn\; id="EditorElement\_1242196">0</mn><mn\; id="EditorElement\_1242197">.</mn><mn\; id="EditorElement\_1242198">3</mn><mn\; id="EditorElement\_1242199">1</mn>$

By maturity $($BBB and above$)1-5$ Yr $5-10$ Yr $10-15$ Yr $>15$ Yr

Average beta $0\mathrm{.}010\mathrm{.}060\mathrm{.}070\mathrm{.}14$