What is red corporation expected rate of return

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Red Corporation is a holding company with four main subsidiaries. The percentage of its business coming from each of the subsidiaries, and their respective expected rate of return, are as follows:

                                Subsidiary             Percentage of business k^

Electric utility                  60%                  7%

Cable company                  25                    9

Real estate                       10                   13

International projects             5                  15

Problem 1: Determine what is Red Corporation expected rate of return on these portfolios.

Reference no: EM132942752

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