Question 1

Shah Jee Investment 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 investment (%)	Beta
ABC electronics	60	0.7
Software house	25	0.9
Call center	10	1.3
Airlines	5	1.5

What is the beta of Shah Jee Investment company?

QUESTION :2

Shah Jee Investment 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 investment (%)	Beta
ABC electronics	60	0.7
Software house	25	0.9
Call center	10	1.3
Airlines	5	1.5

Assume the risk-free rate of return 6% and that the market risk premium is 5%. What is the Shah Jee Investments required rate of return?

Question 3

Shah Jee Investment 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 investment (%)	Beta
ABC electronics	60	0.7
Software house	25	0.9
Call center	10	1.3
Airlines	5	1.5

What will be the shareholders required rate of return, if the percentage of investment in ABC electronics decreases by 15% while call centers and airlines increase by 5% and 10% respectively. while the risk-free rate of return 6% and that the market risk premium is 5%