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Imagine a conglomerate with three divisions. Division As assets have a beta of 0.5; division...

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Finance

Imagine a conglomerate with three divisions. Division As assets have a beta of 0.5; division Bs assets have a beta of 1.0 and Division Cs assets a beta of 1.5. If the company uses the average, 1.0 when valuing projects for all its divisions, which division will the company overinvest in? A. A B. B C. C D. None of the above

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