You have been asked to estimate the beta of a high-technology firm which has three divisions with the following characteristics

Division	Beta	Market Value
Personal Computers	1.60	$100 million
Software	2.00	$150 million
Computer Mainframes	1.20	$250 million

A. What is the beta of the equity of the firm?

2.

1. Which of the following is a source of unsystematic risk?

		a. Interest rates
		b. Business cycle
		c. Energy Prices
		d. Introduction of a bad product

3.

Beta is the slope of

	A.	the security market line
	B.	the capital market line.
	C.	a regression line.
	D.	the CAPM.