a) Estimate the asset beta of Firm 1. Repeat for Firm 2 and Firm 3 b) Firm 1 and Firm 3 decide to merge into one firm. W

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answerhappygod
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a) Estimate the asset beta of Firm 1. Repeat for Firm 2 and Firm 3 b) Firm 1 and Firm 3 decide to merge into one firm. W

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a) Estimate the asset beta of Firm 1. Repeat for Firm 2 and Firm
3
b) Firm 1 and Firm 3 decide to merge into one firm. What is the
asset beta for the conglomerate?
c) Firm 2 wins a law suit and recieves 1000 cash. How would its
asset beta change? Assume that the beta of cash is 0.02
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