Suppose the risk free return is 3:87% and the market portfolio has an expected return of9% and

Fantastic news! We've Found the answer you've been seeking!

Question:

Suppose the risk free return is 3:87% and the market portfolio has an expected return of9% and a volatility of 15%. The share of Unilever has a 30% volatility and a correlation with the market of 0:39.

What is the beta of the share of Unilever with respect to the market?

Related Book For answer-question

Corporate Finance A Focused Approach

ISBN: 978-1305637108

6th edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

See More Books

Posted Date: Nov 01, 2023 12:52 AM

See More Questions

Suppose the risk free return is 4%. The beta of a managed portfolio is 1.2, the alpha is 1%, the average return is 14%. Based on Jensen's measure of portfolio performance, calculate the return on...
A rectangular solid measuring 3 by 4 by 5 is placed on a coordinate grid. a) Determine CF. [1 mark] b) Use the cross product to determine the angle betwen the vectors CF and OP. [3 marks] A(3, 0,0) 7...
4. [15 Pts] Let L = {(a,b) | a, b Z, (a - b) mod 3 = 0}. We want to program a robot that can get to each point (x, y) EL starting at (0,0). (a) [5 Pts] Give an inductive definition of L. This will...
The three courses below represent a polygon. They are consecutive azimuths measured clockwise from North in DMS. Course A to B: 55-35-21 Course B to C: 175-48-19 Course C to A: 293-22-28 Choose the...
Solve. Write each fraction in simplest form. 1. Two thousand baseball caps were sold one year at the U.S. Open Golf Tournament. What fractional part of this total do 200 caps represent? 2. There are...
The Newman Parts Division of Young Company plans to set up a facility with the capacity to make 20,000 units annually of a webcam for laptop computers. The avoidable cost of making the webcam is as...
Should anthropologists work for governments, corporations, and the military? If you believe that anthropologists should be willing to work for these entities, are there limits on the kinds of...
On June 1, Meadow Salad Dressings creates a petty cash fund with an imprest balance of $400. During June, A1 Franklin, the fund custodian, signs the following petty cash tickets: On June 30, prior to...
Joker invites Batman and Robin to his home for tea. Peter Paralegal who is also attending the meeting, presents a will he prepared. He asks Batman and Robin to be physically present when Joker signs...
The Springfield School Board has made the decision to close one of its middle schools (sixth, seventh, and eighth grades) at the end of this school year and reassign all of next year's middle school...
1. What does an Apinaye sentence consist of? a. NP + VP b. VP + NP 2. Is this the same for English? a. yes b. no 3. There are two rules for VERB phrases in Apinaye. One is VP = V. What is the other...
Planning is an approach which helps us decide on the path to achieve the set of objectives an individual, an organization, or a group of people have. True False
Describe your experience where you have developed a good rapport with your peers and supervisors.
Executive methods, market research, and the Delphi method are examples of Quantitative method of forecasting Qualitative method of forecasting Benchmarking None of the above
The Zenibeth Factory, which manufactured Quasar television sets, was taken over by a Japanese company in the USA in the 1980s. After overtaking the company, it was decided to make changes in the way...
Planning does not render flexibility. True False
Which of the following costs should not be included in product costs for internal management reports that are used for decision-making? Costs of unit-level activities. Costs of batch-level...
Assume today is the 21st of February. Using the information below, FT Extract, answer the following questions (parts i and ii). You work for a US company that is due to receive 250 million in June...
Boehm Corporation has had stable earnings growth of 8% a year for the past 10 years and in 2016 Boehm paid dividends of $2.6 million on net income of $9.8 million. However, in 2017 earnings are...
With the growth in demand for exotic foods, Possum Products's CEO Michael Munger is considering expanding the geographic footprint of its line of dried and smoked low-fat opossum, ostrich, and...
Refer to Problem 12-1. Return to the assumption that the company had $5 million in assets at the end of 2016, but now assume that the company pays no dividends. Under these assumptions, what would be...
Assuming that the failure mode for longitudinal compression of unidirectional E-glass/epoxy with fiber volume fraction $v_{\mathrm{f}}=0.6$ is a transverse tensile rupture due to Poisson strains,...
For the IM-9/8551-7 carbon/epoxy composite rod design of Problem 3.3 in Chapter 3, what would be the increase in the longitudinal tensile strength compared with that of the original 6061-T6 aluminum...
Using the maximum strain criterion and micromechanics, set up the equations for predicting the averaged isotropic strength of a randomly oriented continuous fiber composite. Your answer should be...

Suppose the risk free return is 3:87% and the market portfolio has an expected return of9% and

Question:

Expert Answer:

To calculate the beta of the share of Unilever with respect to the market we need t... View the full answer

Corporate Finance A Focused Approach

Students also viewed these finance questions