on page 58- CFA curriculum, the formular for asset beta is = â asset=â equity(1+(1-t)D/E)formular number (45-10). but on the next page there is an example where the formular appears to be reversed. it says suppose the company has equity beta of 1.5 debt to equity ratio of .4 and tax 30%. The first fomular to unlever the asset beta is â asset=â equity (1/(1+(1-t)D/E)) formular number (45-9). âasset=1.58* 1/(1+(1-.3)*.4= 1.17919. i am fine with this. But now my problem is on the second part of the question which says what will happen to the company’s equity beta suppose that debt equity ratio is .5 instead of .4. they now use equation â equity=â asset(1+(1-t)D/E) i.e 1.17919(1+(1-.3)*.5))= 1.5821. how do we realate this to the first equation above i.e â asset=â equity(1+(1-t)D/E) because this calculation appears to be saying â equity=â asset(1+(1-t)D/E). please help!
the french "a "with a hut (chapue) is supposed to be beta every time I put the beat symbol it is changing to ậ. so just read it as beta
I had quite a hard time to figure this out too !! but in fact the answer wasn’t that complicated http://www.cfainstitute.org/cfaprog/resources/pdf/L1_Errata.pdf " In Equation 45-10 (p. 58), the subscripts of “asset” and “equity” should be reversed (âequity = âasset …) " It is a nice catch if u spoted the pb just using the curriculum and common sence, I had to use schweser along with the curriculum Regards
lol by the way it is “chapeau” 
and I cannot use the proper beta symbol either
where is this covered in schweser?
Thank you so much D’Artagnan i printed the errata its now clear. Thanks for the correction with the french spelling too. From your name I can u are French.
Moi aussi je parle le Francais. Dis D’Artagnan tu prends l’examen en France ou quoi?
Kguizo- Je ne parle pas boucoup. Just tres apau. J’ est etude la langue Francais a cultural de France ici dan Malawi. Zenji, not in Schweser its in CFA curriculum page 58.
… I don’t know why I said schweser sorry … they don’t even approach this topic… (but I was sure I compared with schweser :S ) Yes I’m French 
and this exam is killing me (no finance backgroud other than management accounting) Audrey, Good luck with your French 
Kguizo, No I’ll take the exam in London (more conveignant for me), I’m from Marseille