Different divisions-its low-risk division accounts

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The Diversified Growth Co. has three different divisions. Its low-risk division accounts for $5 million of its assets and has a beta of 0.8. Its middle-risk division accounts for $10 million of its assets and has a beta of 1.1, while its high-risk division has assets worth $15 million and a beta of 1.8. Diversified’s overall firm beta is therefore equal to

Reference no: EM13769079

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