A firm with a total asset beta of 03 has a third of its


A firm with a total asset beta of 0.3 has a third of its assets as excess cash, which is not used in the operations of the firm and is invested in risk free T-bills. suppose it pays half of its cash to shareholders and invests the other half in the market. what is the firm's beta now? why does it change?

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Financial Management: A firm with a total asset beta of 03 has a third of its
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