Consider the following information for bonds and stocks: Rating A or above BBB BB B CCC Average default rate 0.2% 0.5% 2.3% 6.0% 12.2% Average beta 0.05 0.1 0.18 0.25 0.30 Firm Debt rating Equity beta Market Capitalization Total Enterprise Value 1 BBB 1.3 2000 8000 2 A 0.8 2400 4000 3 B 1.75 3000 4500 Firm 1 and Firm 3 decide to merge into one firm. What is the asset beta for the conglomerate? (take 3 digits after the decimal point) (Hint: Calculate the asset beta of Firm 1 and Firm 3 first)