9. Ponza International, Inc., has three divisions. One is engaged in leisure wear, one in graphics, and one in household paint. The company has identified proxy companies in these lines of business whose stocks are publicly traded.

Neither Ponza International nor the proxy companies employ debt in their capital structures. On the basis of analyzing these stocks in relation to the market index, Ponza has estimated that the systematic risks of its three divisions are as follows:

Division ( Leisure Graphics Paint Beta 1 1.16 1.64 .70