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Smart Corporation is a holding company with four main subsidiaries. The percentage of its business coming from each of the subsidiaries and their respective betas
Smart 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: a. What is the holding companys beta? b. Assume that the risk free rate is 6% and the market risk premium is 5%. What is the holding companys required rate of return?
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