FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7. Using index model, the regression results for TGL security are: intercept is 0.001, Beta is 1.36. If one of the months' market risk premium

image text in transcribed
7. Using index model, the regression results for TGL security are: intercept is 0.001, Beta is 1.36. If one of the months' market risk premium was 5% and TGL actual risk premium was 8%, what must have been the TGL residual for that month? A.0.7% B. 1.1% C. 2.0% D. 3.0%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Options Futures And Other Derivatives

Options Futures And Other Derivatives

Authors: John C. Hull

3rd Edition

0131864793, 9780306457555

More Books

Students also viewed these Finance questions

Question

★★★★★
"DVA can improve the bottom line when a bank is experiencing financial difficulty." Explain why this statement is true.

Answered: 1 week ago

Question

★★★★★
Wirte a program to get two integers n >0 and k> 1. whenever t least one of the two inputs is not valid. request both inputs again. Only when both inputs are valid, calculate the numerical of value of...

Answered: 1 week ago

Question

★★★★★
How should we work together to fulfill our potential? What should we continue doing, start doing, or stop doing? How should we monitor progress? Who should do what by when?

Answered: 1 week ago

Question

★★★★★
Which of the characteristics of a successful entrepreneur, discussed in the chapter, do you see in Nick Woodman? To what degree do you think these characteristics have contributed to GoPros success?

Answered: 1 week ago

Question

★★★★★
7. Using index model, the regression results for TGL security are: intercept is 0.001, Beta is 1.36. If one of the months' market risk premium was 5% and TGL actual risk premium was 8%, what must...

Answered: 1 week ago

Question

★★★★★
Find the final amount in the following retirement account, in which the rate of return on the account and the regular contribution change over time. $561 per month invested at 5%, compounded monthly,...

Answered: 1 week ago

Question

★★★★★
Prevosti Farms and Sugarhouse pays its employees according to their job classification. The following employees make up Sugarhouse's staff: Employee Number Name and Address Payroll information...

Answered: 1 week ago

Question

★★★★★
The interviews ___ for potential candidates. Group of answer choices is reserved are reserved am reserved

Answered: 1 week ago

Question

★★★★★
= 1.0 John used an existing reactor in his plant to perform a liquid phase reaction AB to produce product B for his customer. This reaction has a rate constant k mol/(m min). The feed to this reactor...

Answered: 1 week ago

Question

★★★★★
For finding FV tables, they are on google. ! Required information [The following information applies to the questions displayed below.) PowerTap Utilities is planning to issue bonds with a face value...

Answered: 1 week ago

Question

★★★★★
Please use the chart below - which plots the indirect quote for Japanese yen ( the number of yen per 1 USD ) - to answer the following question. Companies A , B , and C are all US based. Company A...

Answered: 1 week ago

Previous Question Next Question