Adjusting Beta for Non-Operating Assets: Company C has an estimated beta of 1.3 and uses...
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Adjusting Beta for Non-Operating Assets: Company C has an estimated beta of 1.3 and uses no debt or
other non-common equity financing. The company has 20% of its total market value invested in marketable
securities that have an estimated beta of 0.1 and are assumed to be excess assets. Estimate the unlevered beta
for Company Cs operations.
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