Estimate of the systematic risk of the equity

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Reference no: EM132985830

Question: The Ace Clothing Company has decided to diversify its operations by manufacturing and marketing footwear. Management notes that the systematic risk of the shares of a listed footwear company is 0.8. When would it be appropriate to use 0.8 as the estimate of the systematic risk of the equity for the company's new investment?

Reference no: EM132985830

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