Use the Information for the Question(s)below

question 94

Multiple Choice

Use the information for the question(s) below.
Luther Industries has no debt,a total equity capitalization of $20 billion,and a beta of 1.8.Included in Luther's assets are $4 billion in cash and risk-free securities.
-Considering the fact that Luther's Cash is risk-free,Luther's unlevered beta is closest to:

• A)1.90.
• B)2.25.
• C)1.50.
• D)1.45.

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Definitions:

Johari Window

A model that describes the relationship between self-disclosure and self-awareness, used in understanding interpersonal communication and relationships.

Unknown Area

A subject matter, place, or situation that is not known or familiar.

Open Area

A spacious and unenclosed zone that is accessible and often used for communal activities or gatherings.

Hidden Area

Part of Johari window concept, it refers to information about oneself that is known to others but not to oneself.