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Corporate Finance · End Term · 10 May 2026 · January 2026 term · Set 1

Question 21: A firm has three divisions: sales division, accounting d…

Question 21

+3 marksOne correct option

A firm has three divisions: sales division, accounting division and logistics division. The sales division has a beta of 2.7, the accounting division has a beta of 0.6, and the logistics division has a beta of 1.5. The sales division has 50% of the company’s assets, the accounting division has 20%, and the logistics division has 30%. What is the company’s overall beta?

  1. A

    1.12

  2. B

    1.52

  3. C

    1.72

  4. D

    1.92

Show answer

Correct answer

  • D

    1.92

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Question 21 of 35 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 10 May 2026, in the January 2026 term (Corporate Finance 06 May 26). It carries 3 marks.

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