The Diversified Growth Co. has three different divisions. Its low-risk division accounts for $5 million of its assets and has a beta of 0.8. Its middle-risk division accounts for $10 million of its assets and has a beta of 1.1, while its high-risk division has assets worth $15 million and a beta of 1.8. Diversified's overall firm beta is therefore equal to

A.1.23.

B.1.40

C.1.00.

D.0.95

Answer rating: 100% (QA)

14 as shown below Division Value Weighta ... View the full answer