This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Given an expected market return of 12.0, a beta of 0.75 for Benson Industries, and a risk-free rate ... (Read 307 times)

wenmo

  • Hero Member
  • *****
  • Posts: 540
on: Jul 10, 2018
Given an expected market return of 12.0, a beta of 0.75 for Benson Industries, and a risk-free rate of 4.0, what is the expected return for Benson Industries?
 
  A) 13.0
  B) 10.0
  C) 9.0
  D) 4.0

Question 2

The Security Market Line has ________.
 
  A) a positive slope
  B) a negative slope
  C) no slope
  D) a beta of 1.0


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Harbringer

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: B
Explanation: B) The equation for the SML is E(ri) = rf + (rf + E(rm) - rf  i)
= 4.00 + 0.75  (12.00 - 4.00) = 10.00.

Answer to Question 2

Answer: A


wenmo

  • Member
  • Posts: 540
Reply 2 on: Jul 10, 2018
Wow, this really help

adammoses97

  • Member
  • Posts: 337
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Structures of (a) free and (b) DNA-bound forms of BamHI, with DNA shown end-on, in orange Structures of (a) free and (b) DNA-bound forms of BamHI, with DNA shown end-on, in orange
Target Heart Rate Target Heart Rate
Effect of Increasing the Investment Rate on the Steady State Effect of Increasing the Investment Rate on the Steady State
Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ... Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ...
The age-adjusted rate of melanoma, a deadly form of skin cancer, from 1973 to 2000. Over that time p The age-adjusted rate of melanoma, a deadly form of skin cancer, from 1973 to 2000. Over that time p
Annotation of a DNA sequence containing part of the human beta-globin gene Annotation of a DNA sequence containing part of the human beta-globin gene
Video: Summary of female reproductive cycle days 1-28

For a complete list of videos, visit our video library