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:

Mental Operations

The cognitive processes by which an individual manipulates and transforms information in their mind.

Mathematical Transformations

Mathematical Transformations refer to the application of specific operations that change the appearance of a figure or equation while preserving certain properties.

Piaget

Jean Piaget, a Swiss psychologist known for his pioneering work in child development and cognitive psychology.

Empathizing

The ability to understand and share the feelings of another person, seeing from their perspective and experiencing their emotions.