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Non-institutional sources - long-term - class-XI
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A project has an equity beta of 1.2 and debt beta of 0. This project is finance by combination of $30%$ debt and $70%$ equity, then project beta is _______.
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A
0.84
💡 Explanation:
$\beta _p$ = $\frac{{\beta equity X E}}{D + E}$ + $\frac{{\beta debt X D}}{D + E}$.