Duke Energy is a multi-divisional utility company. Duke Energy has four divisions with the following betas and proportions of the firm's total assets: Division Electric & Gas Bus transportation Real estate Recreation What is the firm's weighted average beta? 3.575 3.150 2.255 Beta 1.64 1.08 4.60 3.68 2.750 % of Assets 20 10 15 55

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Duke Energy is a multi-divisional utility company. Duke Energy has four divisions
with the following betas and proportions of the firm's total assets:
Division
Electric & Gas
Bus transportation
Real estate
Recreation
Beta
1.64
1.08
4.60
3.68
What is the firm's weighted average beta?
3.575
3.150
2.255
2.750
% of Assets
20
10
15
55
Transcribed Image Text:Duke Energy is a multi-divisional utility company. Duke Energy has four divisions with the following betas and proportions of the firm's total assets: Division Electric & Gas Bus transportation Real estate Recreation Beta 1.64 1.08 4.60 3.68 What is the firm's weighted average beta? 3.575 3.150 2.255 2.750 % of Assets 20 10 15 55
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