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Imagine a conglomerate with three divisions (think Marriott Corporation). Division A's assets have a beta of 0.5 division B's assets, a bete of 1.0; and

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Imagine a conglomerate with three divisions (think Marriott Corporation). Division A's assets have a beta of 0.5 division B's assets, a bete of 1.0; and division C's assets, a beta of 1.5. If the company uses the average, 1.0, when valuing projects for all its divisions, which division will the company overinvest in? OA. Not enough information has been provided to answer the question OB Division B C. It will not overinvest. D. Division E. Division A

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