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 | 60% | .70 |
| Cable Company | 25% | .90 |
| Real estate | 10% | 1.30 |
| Technology companies | 5% | 1.50 |
- 1) What is the companys beta?
- 2) Assumethattherisk-freerateis6%andthatthemarketriskpremiumis5%.Whatistheholdingcompanysrequiredrateofreturn?
PLEASE SHOW WORK IF POSSIBLE !!!!!
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
