You'd like to estimate the levered beta of a private firm (i.e., a firm that is not publicly traded). After some research, you ended up forming a poll of ten publicly traded firms that operates on the same type of business of your private firm. How would you estimate the levered beta of the private firm?

Group of answer choices

Calculate the average levered beta of the publicly traded firms. Your estimate will be this average levered beta multiplied by [1 + (1-tax rate)*debt-to-equity ratio of private firm]

Calculate the average unlevered beta of the publicly traded firms. Your estimate will be this average unlevered beta multiplied by [1 + (1-tax rate)*debt-to-equity ratio of private firm]

Calculate the average unlevered beta of the publicly traded firms. Your estimate will be this average unlevered beta.

Calculate the average levered beta of the publicly traded firms. Your estimate will be this average levered beta.