NYSE 60 trading day Beta Equity LM for Lockheed Martin = 0.37 Debt/equity ratio for Lockheed Martin = 0.410 Beta asset defense = 0.37/[1+(1-0.35)0.41] = 0.29 S&P500 60 trading day Beta Equity NG for Northrop Grumman=0.30 Debt/equity ratio for Northrop Grumman = 0.640 Beta asset defense = 0.30/[1+(1-0.35)0.640 = 0.21 Average beta of defense = 0.25 From Exhibit 10,Boeing Rev from Defense (Wdefense) = 0.46 Boeing Rev from Commercial Sales (Wcommercial) = 0.54