Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 24, 2024

What is the beta of Franklin stock if the current risk-free rate is 6%, the expected risk premium on the market portfolio is 9% and

What is the beta of Franklin stock if the current risk-free rate is 6%, the expected risk premium on the market portfolio is 9% and the expected rate of return on Franklin is 17.7%?

Possible answers are:

a. 1.5

b. 1.9

c. 1.7

d. 1.3

I am getting a value of 3.9

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

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

Risk Management And Financial Institutions

Authors: John C. Hull

3rd Edition

1118269039, 9781118269039

More Books

Students also viewed these Finance questions

Question

★★★★★

At the beginning of the current period, Huang Ltd. had balances in Accounts Receivable of $200,000 and in Allowance for Doubtful Accounts of $14,000 (credit). During the period, Huang had credit...

Answered: 1 week ago

Question

★★★★★

The biconditional statement $p \leftrightarrow q$ is ____________ whenever the truth value of $p$ matches the truth value of $q$, otherwise it is ____________. Fill in the blank to complete the...

Answered: 1 week ago

Question

★★★★★

When a woman succeeds on some tasks, she typically says that her success is due to ability, whereas a man tends to attribute his success to hard work. True or False

Answered: 1 week ago

Question

★★★★★

Luster Company has current assets of $130,000 and current liabilities of $80,000, of which accounts payable are $70,000. Lusters cost of goods sold is $460,000, its merchandise inventory increased by...

Answered: 1 week ago

Question

★★★★★

Solich Sandwich Shop had the following long-term asset balances as of December 31, 2021: Accumulated Depreciation Land Building Equipment Patent Cost $ 92,000 457,000 234,300 235,000 $(164,520)...

Answered: 1 week ago

Question

★★★★★

An assessment is made on a prescribed form which must be served on the taxpayer. The following are TRUE regarding types of assessment EXCEPT: Additional assessment (Form CP61) - additional assessment...

Answered: 1 week ago

Question

★★★★★

Barilla Case: Which of the following contributed significantly to the weekly order fluctuation Barilla was experiencing? (Choose all that apply) Group of answer choices Lack of trust (history of...

Answered: 1 week ago

Question

★★★★★

7- Figure P6-28 shows a quick-return mechanism with dimensions. Calculate the velocities of points A, B, and C and the velocity of slip for the position shown. 2 = 10 rad/s CCW. L2-1.00 in L4 4.76...

Answered: 1 week ago

Question

★★★★★

Slugworth Candies, LLC, candy-making company that employs around 390 people. The company is composed of seven departments: Executive Staff (40), Human Relations (5), Finance and Accounting (10),...

Answered: 1 week ago

Question

★★★★★

A. Consider the case of a single mother with two children, who is trying to decide how many hours to work each month. Suppose, due to constraints such as child care, she is limited to working a...

Answered: 1 week ago

Question

★★★★★

HW Assignment #10 Fiscal Policy Calculate and graph what happens to G, AD, GDP, and Prices if the government increases government spending by 100 billion and the MPC : .80. Calculate and graph what...

Answered: 1 week ago

Question

★★★★★

2. There is no simple solution to the distractions that we face in our personal and work lives. Jackson states that the solution to the issue is self-discipline. Many distractions are self-initiated....

Answered: 1 week ago

Question

★★★★★

2. Print out the most recent e-mails that you have sent or received and bring them to class. Analyze their effectiveness in terms of the e-mail tips in this chapter. Did the messages violate any of...

Answered: 1 week ago

Question

★★★★★

c. On the basis of these two continua, determine Oprah Winfreys communication style. d. In your opinion, does Oprah Winfrey display style flexibility?

Answered: 1 week ago

Previous Question Next Question