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What Is a Franchise? What Are the Two Basic Forms

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What is a franchise? What are the two basic forms of franchising? Describe each form and give an example.


Definitions:

Risk-Free Rate

The expected return on an investment that carries no risk, frequently indicated by government bond yields.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, used widely in statistics to quantify the degree of difference.

Expected Return

The anticipated value or percentage yield that an investment is likely to earn over a specified period.

Portfolio Weight

The fraction of a portfolio's total value that is invested in a particular asset.

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