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:

Critical Rationalists

Individuals who advocate for the approach of systematically questioning and critically examining one's own beliefs and views.

Abraham and Isaac

A biblical story from the Book of Genesis about Abraham's faith being tested by God, who commands him to sacrifice his son Isaac, before stopping him at the last moment.

Essentially

At its core or in its most important aspects.

Confucianism

An ethical and philosophical system developed from the teachings of the Chinese philosopher Confucius, focusing on morality, family loyalty, and respect for elders.