- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 6. Capital Structure
- Subject 3. Modigliani-Miller Capital Structure Propositions
CFA Practice Question
A company is financed with 30% debt and 70% equity. The equity beta is 1.2, and the debt beta is 0.2. The company beta is: A. 0.9
B. 1.0
C. 1.1
Correct Answer: A
0.3 x 0.2 + 0.7 x 1.2 = 0.9
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