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

---

Definitions:

Funding

The act of providing financial resources to finance a need, program, or project, usually in the form of money or other resources like effort or time.

Computer-Based Training

A method of learning that uses computers to deliver, track, and manage training programs, often allowing self-paced learning.

Flexibility

The ability of an individual or organization to adapt to changes, challenges, or new demands in the environment or processes.

Interactive Form

A type of digital or printed form designed to engage users by allowing interaction through inputs, selections, or other elements, facilitating a two-way flow of information.