Question
Florist Gump company has two divisions with positive investment in each: floral arrangements and seafood restaurant supply. The overall company has a beta of 1.25.
Florist Gump company has two divisions with positive investment in each:
floral arrangements and
seafood restaurant supply.
The overall company has a beta of 1.25.
You estimate that the floral arrangement division has a beta of 0.9.
Calculate What should the beta of the seafood supply division be?
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