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Adjusting Beta for Non-Operating Assets: Company C has an estimated beta of 1.3 and uses...

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Finance

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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