This is with reference to above cited material. Specifically, somehow equation 45.10 doesnt make sense to me. Please suggests.
For convenience 45.10 in CFAI TEXT states Beta (asset) = Beta (equity) [1+(1-t)debt to equity]
Check the Errata, there is an error in this equation. http://www.cfainstitute.org/cfaprog/resources/pdf/L1_Errata.pdf I strongly suggest checking the errata for each entry and annotate the books.
is it necessary to know this for the exam? i passed the L1 but dont recollect reading this one. is it there on the LOS to know this?
I failed with borderline score, now so scared to loose any marks, trying to give max.