Homework Answers
a. Return = (26,600 - 22,100)/22,100 + Dividend yield
Return = 0.2606635071 + 0.046
Return = 0.3066635071
Return = 30.67%
b. Risk premium = Return - interest rate
Risk premium = 0.3066635071 - 0.08
Risk premium = 0.2266635071
Risk premium = 22.67%
c. Real return = (1 + 0.3066635071)/(1 + inflation) - 1
Real return = (1 + 0.3066635071)/(1 + 0.09) - 1
Real return = 0.1987738597
Real return = 19.88%
Can you please upvote? Thank You :-)
Add Answer to:
The level of the Syldavian market index is 22,100 at the start of the year and...
You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 20 percent,...
You’ve observed the following returns on Yasmin Corporation’s stock over the past five years: 20 percent, –12 percent, 17 percent, 20 percent, and 10 percent. Suppose the average inflation rate over this period was 1.7 percent and the average T-bill rate over the period was 4.6 percent. a. What was the average real return on the company's stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average real return ______...
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: ...
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 16 percent, -16 percent, 18 percent, 28 percent, and 10 percent. Suppose the average inflation rate over this period was 2.1 percent and the average T-bill rate over the period was 4.2 percent. a. What was the average real return on the company's stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was...
Rate of Return If State Occurs State of Economy Boom Normal Bust Probability of State of...
Rate of Return If State Occurs State of Economy Boom Normal Bust Probability of State of Economy .20 .50 .30 Stock B .38 Stock A .26 .10 .01 Stock C .50 .08 .06 -.20 -.40 a-1If your portfolio is invested 30 percent each in A and B and 40 percent in C, what is the portfolio expected return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Portfolio expected return %...
onsider the following information about three stocks: State of Economy Probability of State of Economy Rate...
onsider the following information about three stocks: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom 0.20 0.20 0.32 0.54 Normal 0.45 0.18 0.16 0.14 Bust 0.35 0.02 −0.34 −0.42 a-1. If your portfolio is invested 40% each in A and B and 20% in C, what is the portfolio expected return? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.)...
You've observed the following returns on Yamauchi Corporation's stock over the past five years: -28.8 percent,...
You've observed the following returns on Yamauchi Corporation's stock over the past five years: -28.8 percent, 16.2 percent, 35.4 percent, 3.6 percent, and 22.6 percent. The average inflation rate over this period was 3.36 percent and the average T-bill rate over the period was 4.3 percent. a. What was the average real return on the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the average...
You've observed the following returns on Yamauchi Corporation's stock over the past five years: -27.6 percent, 15.4 per...
You've observed the following returns on Yamauchi Corporation's stock over the past five years: -27.6 percent, 15.4 percent, 33.8 percent, 3.2 percent, and 22.2 percent. The average inflation rate over this period was 3.32 percent and the average T-bill rate over the period was 4.3 percent. a. What was the average real return on the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the average...
Consider the following table for an eight-year period: Year T-bill return Inflation 1 7.44 % 8.56...
Consider the following table for an eight-year period: Year T-bill return Inflation 1 7.44 % 8.56 % 2 8.79 12.19 3 6.02 6.79 4 5.82 5.01 5 5.60 6.55 6 8.39 8.87 7 10.71 13.14 8 12.85 12.37 Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average return for Treasury...
Consider the following table for an eight-year period: Year WN T-bill return 7.40% 8.59 5.98 5.62...
Consider the following table for an eight-year period: Year WN T-bill return 7.40% 8.59 5.98 5.62 5.56 8.19 10.67 12.65 Inflation 8.60% 1223 6.83 4.97 6.59 8.91 13.18 12.41 00 O a. Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation of Treasury bill returns and...
Consider the following table for an eight-year period: Year WN T-bill return 7.40% 8.59 5.98 5.62...
Consider the following table for an eight-year period: Year WN T-bill return 7.40% 8.59 5.98 5.62 5.56 8.19 10.67 12.65 Inflation 8.60% 1223 6.83 4.97 6.59 8.91 13.18 12.41 00 O a. Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation of Treasury bill returns and...
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 8 percent,...
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 8 percent, -15 percent, 19 percent, 31 percent, and 21 percent. Suppose the average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 3.9 percent. a. What was the average real return over this time period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What was the...
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 16 percent, -16 percent, 18 percent, 28 percent, and 10 percent. Suppose the average inflation rate over this period was 2.1 percent and the average T-bill rate over the period was 4.2 percent. a. What was the average real return on the company's stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was...
Rate of Return If State Occurs State of Economy Boom Normal Bust Probability of State of Economy .20 .50 .30 Stock B .38 Stock A .26 .10 .01 Stock C .50 .08 .06 -.20 -.40 a-1If your portfolio is invested 30 percent each in A and B and 40 percent in C, what is the portfolio expected return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Portfolio expected return %...
You've observed the following returns on Yamauchi Corporation's stock over the past five years: -28.8 percent, 16.2 percent, 35.4 percent, 3.6 percent, and 22.6 percent. The average inflation rate over this period was 3.36 percent and the average T-bill rate over the period was 4.3 percent. a. What was the average real return on the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the average...
You've observed the following returns on Yamauchi Corporation's stock over the past five years: -27.6 percent, 15.4 percent, 33.8 percent, 3.2 percent, and 22.2 percent. The average inflation rate over this period was 3.32 percent and the average T-bill rate over the period was 4.3 percent. a. What was the average real return on the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the average...
Consider the following table for an eight-year period: Year WN T-bill return 7.40% 8.59 5.98 5.62 5.56 8.19 10.67 12.65 Inflation 8.60% 1223 6.83 4.97 6.59 8.91 13.18 12.41 00 O a. Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation of Treasury bill returns and...
Consider the following table for an eight-year period: Year WN T-bill return 7.40% 8.59 5.98 5.62 5.56 8.19 10.67 12.65 Inflation 8.60% 1223 6.83 4.97 6.59 8.91 13.18 12.41 00 O a. Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation of Treasury bill returns and...
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 8 percent, -15 percent, 19 percent, 31 percent, and 21 percent. Suppose the average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 3.9 percent. a. What was the average real return over this time period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What was the...
Most questions answered within 3 hours.
-
What taboo subject did Ida B. Wells suggest was consensual
between black men and white women?...
asked 39 minutes ago -
You have just been hired by the EPA to help with the new gas
mileage standards...
asked 1 hour ago -
4) A firm is hit by increases in its wage rate, w.
a) How does this...
asked 1 hour ago -
A square current loop 5.4 cm on each side carries a 510 mA
current. The loop...
asked 3 hours ago -
What are five tips in conducting knowledge assessment/literature
review research? Each of these tips needs to...
asked 4 hours ago -
Antigen presenting cells link innate and adaptive immune
responses. In the theoretical scenario where phagosomes cannot...
asked 4 hours ago -
Dealing with conflict, in my opinion, is a skill and an art. I
believe that those...
asked 5 hours ago -
6. A long straight wire with circular cross section and radius
1.5 cm carries a 1.2...
asked 5 hours ago -
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 6 hours ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 6 hours ago -
A high-pass filter consists of a 1.60 μF capacitor in series
with a 125 Ω resistor....
asked 6 hours ago -
A newly developed artificial intelligence has trouble
distinguishing hand-written numbers from hand-written alphabets.
There are pictures...
asked 6 hours ago