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Suppose That Because of the Large Need for Steel in Building

Question 6

Multiple Choice

Suppose that because of the large need for steel in building railroad infrastructure,Taggart Transcontinental and Rearden Metal decide to form into one large conglomerate.Your estimate of the asset beta for this new conglomerate is closest to:


A) 0.42.
B) 0.59.
C) 0.66.
D) 0.68.

Correct Answer:

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