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Topic: Business
Number of pages / Number of words: 3 / 667
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Consequently, the Bu was back-factored from the relationship between the divisional Bu's (or Buc - contracting, Bul - lodging, and Bur - restaunrants ) and the company Bu (or Bum - Marriott) expressed in the following formula:

where W's are the respective weight factors of each divisional Bu. The Bu is by definition a measure of risk associated with equity alone...


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The Bu is by definition a measure of risk associated with equity alone. The company equity can be viewed as a portfolio in which the divisional equities are individual investments. The contribution of each investment's Beta to the portfolio Beta is based on the portion of that investment in the whole portfolio which in this case is the portion of a divisional equity in the company equity (Ed/Ec)...


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