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XYZ has equity worth $10 million and debt worth $4 million. Assuming that the debt is riskless and the beta of the equity is 2.0,

XYZ has equity worth $10 million and debt worth $4 million. Assuming that the debt is riskless and the beta of the equity is 2.0, what is the beta of the assets?

A. 2.00

B. 1.43

C. more information is needed

D. none of the above

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