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Down in the Dumps Waste Management and Psychiatric Services runs two lines of business with the following properties: Division Value of Division Beta Waste Management

Down in the Dumps Waste Management and Psychiatric Services runs two lines of business with the following properties:

Division Value of Division Beta
Waste Management (WM) $250,000 0.80
Psychiatric Services (PSY) $400,000 ??

The company has an overall beta of 1.2. What is the beta on Psychiatric Services projects?

a) 0.80 b) 1.45 c) 1.20 d) 1.87 e) 0.89

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