Reading 22 Q2 - Beta for total operating assets

CFA Level III
#1

In reading 22 Q2 (p.486), the beta of total operating assets has to be calculated. As I understand, the solution calculated the beta of the total assets, but not of the operating assets including plan assets. Only in the solution for Q3, the assets beta is calculated correctly and used as an input to derive the WACC. Please discuss. Next question: When do we use the beta and WACC derived from *operating* assets (including the effect from the plan assets)? When do we use the beta and WACC derived from the *total* assets (including the effect from the plan assets)? Many thanks

#2

use search function. This topic has been discussed extensively in many years.

#3

Well in this CFA dont think of total assets. You will end up confused. Here is one of threads you can look into: http://www.analystforum.com/phorums/read.php?13,1226252,1226277

#4

thanks.

#5

This is on my list of topics to review – simply did not click the first go around. I’m curious if it will show on Level III. Seems like a question much more suited for Level II.