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MECD Corporation is a holding company with four subsidiaries. The percentage of its business coming from each of the subsidiaries and respective beta are as

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MECD Corporation is a holding company with four subsidiaries. The percentage of its business coming from each of the subsidiaries and respective beta are as follows: Subsidiaries Electric utility Cable company Real estate International / Special Projects Business (%) 60 25 10 5 Beta 0.7 0.9 1.3 1.5 (a) Calculate the portfolio beta. (4 marks)

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