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Calculate the unlevered beta

Question 1: An asset has a beta of 1.6. The risk-free rate is 6 percent, and the market risk premium is 8 percent. Using the SML, estimate the required rate of return on this asset.

Question 2: Suppose Firm A's levered beta is 0.75, its D/E ratio is 0.62, and its tax rate is 34 percent. Calculate its unlevered beta.

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Finance Basics: Calculate the unlevered beta

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