Determine what is Red Corporation expected rate of return

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Question - Red Corporation is a holding company with four main subsidiaries. The percentage of its business coming from each of the subsidiaries, and their respective expected rate of return, are as follows:

Subsidiary Percentage of business

Electric utility 60% 7%

Cable company 25 9

Real estate 10 13

International projects 5 15

Required - Determine what is Red Corporation expected rate of return on these portfolios.

Reference no: EM133041031

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