Why do we lump the whole pension liability together as with a Beta of 0? What I mean is the right side of a pension and operating asset economic balance sheet, where we have three entries, liabilities (Beta =0, thats fine) equity (beta = firm equity beta, thats fine) and pension liabilities (beta= 0 I dont get it) If the pension liabilities are part debt and part equity would the pension liability beta be the weight in equities times the beta of the equity portion of the pension?
pension liablilities just like firm liabilities , bond, beta=0.
Oh, nevermind. I confused myself