15.2
2. Imagine that Boeing decides that it wants to start making and
selling sneakers. Where should they get the beta (b ) for making the capital budgeting
decision for this project? (2 pts.)
The best place to get the beta would be to look at a shoe company. Boeing would want to be careful not to use its own beta for this project because that would be an aircraft mfg. beta and it is considering making shoes. Nike or Adidas would be a good start for determining a good shoe beta.