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Corporate Finance · End Term · 13 Apr 2025 · January 2025 term

Question 21: A company has two divisions: production division and sal…

Question 21

+3 marksOne correct option

A company has two divisions: production division and sales division. The production division has a beta of 1.2 and the sales division has a beta of 1.8. The production division has the 70% of company’s assets and 30% of company’s assets are in sales division. What is the company’s overall beta?

  1. A

    1.08

  2. B

    1.38

  3. C

    1.58

  4. D

    1.88

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Correct answer

  • B

    1.38

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Question 21 of 35 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 13 Apr 2025, in the January 2025 term (IIT M IMPROVEMENT AN EXAM QIM3 13 Apr 2025). It carries 3 marks.

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