SCAN Is a Multi-Divisional Utility Company ?
What Is the Firm's Weighted Average Beta?
A) 1

question 18

Multiple Choice

SCAN is a multi-divisional utility company. SCAN has four divisions with the following betas and proportions of the firm's total assets: ? $\begin{array}{lcc}\text { Division } & \text { Beta } & \% \text { of Assets } \\\text { Electric \& Gas } & 0.85 & 60 \\\text { Bus transportation } & 0.95 & 10 \\\text { Real estate } & 1.40 & 25 \\\text { Recreation } & 1.15 & 5\end{array}$ ?
What is the firm's weighted average beta?

• A) 1.01
• B) 1.53
• C) 0.93
• D) 1.13

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Definitions:

Conceptual Hierarchies

Structures that arrange knowledge and concepts from the most general to the most specific.

Species

A group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding.

Source Monitoring

The process of determining the origins of our memories, knowledge, or beliefs.

Episodic Memory

A form of lasting memory that deals with remembering particular incidents, contexts, and personal experiences, along with the emotions and settings linked to these memories.