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You are trying to compute the bottom up beta for a firm that operates in biotechnology with an unlevered industry beta of 1 . 2
You are trying to compute the bottom up beta for a firm that operates in biotechnology with an unlevered industry beta of The firm is considering the purchase of a division operating in farmingagriculture with an unlevered beta of All else equal and assuming that the new division will not change the DE of the firm, how would this transaction affect the firm's bottomup beta?
Decrease
No change
Increase
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