Doubt Regarding Equity Beta and Asset Beta
Personal Finance & Money Asked by santhosh kota on May 11, 2021
I know regarding levered beta (equity beta) and how to convert into unlevered beta (asset beta). But recently my finance professor in one of his slides showed the below formula :
asset beta = (D/D+E)*debt_beta+(E/E+D)*equity_beta
I am not able to understand how he has arrived at the above formula ?
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