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Bettina Morescott is CFO for Berwick Corporation, a conglomerate that has three divisions. Division A's assets have a beta of 0.5; Division B's assets, a

Bettina Morescott is CFO for Berwick Corporation, a conglomerate that has three divisions. Division A's assets have a beta of 0.5; Division B's assets, a beta of 1.5; and Division C's assets, a beta of 1.0. Currently, Bettina uses the average, 1.0, when valuing projects for all of Berwick's divisions. Which division of Berwick Corporation will Bettina overinvest in? Justify your answer by discussing the impact on cost of capital and value of Berwick Corporation

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