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Grounded Coffee, a drive-thru company, has four subsidiaries. The percentage of its business coming from each of the subsidiaries and their respective betas are as follows: Subsidiary                                  Perecentage of business              Beta  Electric utility                                            30%.                                   1,20 Cable company                                         20%                                    0,80 Real estate                                                 15%                                     1,30 International special project                     35%                                    0,60   What is the holding company’s beta? 1. 0,41 2. 0,52 3. 0,72 4. 0,93

Grounded Coffee, a drive-thru company, has four subsidiaries. The percentage of its business coming from each of the subsidiaries and their respective betas are as follows: Subsidiary                                  Perecentage of business              Beta  Electric utility                                            30%.                                   1,20 Cable company                                         20%                                    0,80 Real estate                                                 15%                                     1,30 International special project                     35%                                    0,60   What is the holding company’s beta? 1. 0,41 2. 0,52 3. 0,72 4. 0,93

Essentials Of Investments
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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Grounded Coffee, a drive-thru company, has four subsidiaries. The percentage of its business coming from each of the subsidiaries and their respective betas are as follows:

Subsidiary                                  Perecentage of business              Beta 

Electric utility                                            30%.                                   1,20

Cable company                                         20%                                    0,80

Real estate                                                 15%                                     1,30

International special project                     35%                                    0,60

 

What is the holding company’s beta?

1. 0,41

2. 0,52

3. 0,72

4. 0,93

 

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