Question
Hologram Corporation is a holding company with four main subsidiaries. The percentage of its business coming from each of the subsidiaries, and their respective betas,
Hologram Corporation is a holding company with four main subsidiaries. The percentage of its business coming from each of the subsidiaries, and their respective betas, are as follows:
| Subsidiary | Percentage of Business | Beta |
| Water Company | 45% | .70 |
| Cable Company | 20% | .90 |
| Real estate | 15% | 1.30 |
| Technology companies | 20% | 1.50 |
Assume that the risk-free rate is 6% and that the market risk premium is 5%. What is the holding companys required rate of return?
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Understanding Terrorist Finance
Authors: T. Wittig
2011th Edition
0230291848, 978-0230291843
