Homework Answers
Market risk premium is difference between annual rate of return and T-Bill yield for same period. Thus, in the said question, it is difference between 11.4% and 5%.
Answer = 6.4%
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Risk Premium If the annual return on the S&P 500 Index was 11.40 percent. The annual...
The average annual return on the S&P 500 Index from 1996 to 2005 was 17.07 percent....
The average annual return on the S&P 500 Index from 1996 to 2005 was 17.07 percent. The average annual T-bill yield during the same period was 4.07 percent. What was the market risk premium during these ten years?
The average annual return on the S&P 500 Index from 1986 to 1995 was14.55 percent. The...
The average annual return on the S&P 500 Index from 1986 to 1995 was14.55 percent. The average annual T-bill yield during the same period was 3.00 percent. What was the market risk premium during these ten years? (Round your answer to 2 decimal places.) Average market risk premium
"The average annual return on the Standard and Poor's 500 Index from 1986 to 1995 was 17.6 percent. The average annual T-bill...
"The average annual return on the Standard and Poor's 500 Index from 1986 to 1995 was 17.6 percent. The average annual T-bill yield during the same period was 9.8 percent. what was the market risk during these 10 years?
The average annual return on an Index from 1996 to 2005 was 19.31 percent. The average...
The average annual return on an Index from 1996 to 2005 was 19.31 percent. The average annual T-bill yield during the same period was 3.91 percent. What was the market risk premium during these ten years? (Round your answer to 2 decimal places.)
Realized Return for the S&P 500, Microsoft, and Treasury Bills, 2002-2014 S&P 500 Index Dividends Paid...
Realized Return for the S&P 500, Microsoft, and Treasury Bills, 2002-2014 S&P 500 Index Dividends Paid S&P 500 Realized Return Microsoft Realized Return 1-Month T-Bill Return Year End 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1148.08 879.82 1111.92 1211.92 1248.29 418.30 1468.36 903.25 1115.10 1257.64 1257.60 1426.19 1848.36 2058.90 20.80 20.98 23.15 -22.1% 28.7% 109% -22 0% 6.8% 89% 15.8% 5.5% -37.0% 26 5% 158% 20.8% -44.4% 60 5% -65% -4.5% 4.8% 47%...
19. The Ple ratio for the S&P 500 (an index that contains 500 stocks with large...
19. The Ple ratio for the S&P 500 (an index that contains 500 stocks with large market capitalizations) is 18. The yield to maturity on 30-year fixed-rate U.S. government Treasury bonds is 3.01%. The 30-year TIPS yield is 0.99%. What is the expected long-term return on the stock market? derate list gocem ent Proceuly bonds is The Soligeir Tops yield is A. 2.02% B. 7.58% C. 20.02% D. 5.03% E. 4.57% 20. The Ple ratio for the S&P 500 (an...
Use the data in the following table: Year End S&P 500 Index Dividends Paid* S&P 500...
Use the data in the following table: Year End S&P 500 Index
Dividends Paid* S&P 500 Realized Return Microsoft Realized
Return 1-Month T-Bill Return 2004 1211.92 2005 1248.29 23.15 4.90%
-0.90% 3.00% 2006 1418.3 27.16 15.80% 15.80% 4.80% 2007 1468.36
27.86 5.50% 20.80% 4.70% 2008 903.25 21.85 -37.00% -44.40% 1.50%
2009 1115.1 27.19 26.50% 60.50% 0.10% 2010 1257.64 25.44 15.10%
-6.50% 0.10% 2011 1257.61 26.59 2.10% -4.50% 0.00% 2012 1426.19
32.67 16.00% 5.80% 0.10% 2013 1848.36 39.75 32.40% 44.30% 0.00%...
The risk-free rate of return is 3 percent and the market risk premium is 10 percent....
The risk-free rate of return is 3 percent and the market risk premium is 10 percent. What is the expected rate of return on a stock with a beta of 1.2? Multiple Choice o 12.00% o 6.80% o 750% o 13.60% o 15.00%
1. Consider historical data showing that the average annual rate of return on the S&P 500...
1. Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 85 years has averaged roughly 8% more than the Treasury bill return and that the S&P 500 standard deviation has been about 20% per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is 5%. Calculate the expected return and variance of portfolios invested in T-bills and the S&P 500 index...
Refer the table below on the average risk premium of the S&P 500 over T-bills and...
Refer the table below on the average risk premium of the S&P 500 over T-bills and the standard deviation of that risk premium. Suppose that the S&P 500 is your risky portfolio. Period 1926-2015 1992–2015 1970–1991 1948-1969 1926-1947 Average Annual Returns S&P 500 1-Month Portfolio T-Bills 11.77 3.47 10.79 2.66 12.87 7.54 14.14 2.70 9.25 0.91 S&P 500 Portfolio Risk Standard Premium Deviation 8.30 20.59 8.13 18.29 5.33 18.20 11.44 17.67 8.33 27.99 Sharpe Ratio 0.40 0.44 0.29 0.65 0.30...
The average annual return on the S&P 500 Index from 1986 to 1995 was14.55 percent. The average annual T-bill yield during the same period was 3.00 percent. What was the market risk premium during these ten years? (Round your answer to 2 decimal places.) Average market risk premium
The average annual return on an Index from 1996 to 2005 was 19.31 percent. The average annual T-bill yield during the same period was 3.91 percent. What was the market risk premium during these ten years? (Round your answer to 2 decimal places.)
Realized Return for the S&P 500, Microsoft, and Treasury Bills, 2002-2014 S&P 500 Index Dividends Paid S&P 500 Realized Return Microsoft Realized Return 1-Month T-Bill Return Year End 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1148.08 879.82 1111.92 1211.92 1248.29 418.30 1468.36 903.25 1115.10 1257.64 1257.60 1426.19 1848.36 2058.90 20.80 20.98 23.15 -22.1% 28.7% 109% -22 0% 6.8% 89% 15.8% 5.5% -37.0% 26 5% 158% 20.8% -44.4% 60 5% -65% -4.5% 4.8% 47%...
19. The Ple ratio for the S&P 500 (an index that contains 500 stocks with large market capitalizations) is 18. The yield to maturity on 30-year fixed-rate U.S. government Treasury bonds is 3.01%. The 30-year TIPS yield is 0.99%. What is the expected long-term return on the stock market? derate list gocem ent Proceuly bonds is The Soligeir Tops yield is A. 2.02% B. 7.58% C. 20.02% D. 5.03% E. 4.57% 20. The Ple ratio for the S&P 500 (an...
Use the data in the following table: Year End S&P 500 Index
Dividends Paid* S&P 500 Realized Return Microsoft Realized
Return 1-Month T-Bill Return 2004 1211.92 2005 1248.29 23.15 4.90%
-0.90% 3.00% 2006 1418.3 27.16 15.80% 15.80% 4.80% 2007 1468.36
27.86 5.50% 20.80% 4.70% 2008 903.25 21.85 -37.00% -44.40% 1.50%
2009 1115.1 27.19 26.50% 60.50% 0.10% 2010 1257.64 25.44 15.10%
-6.50% 0.10% 2011 1257.61 26.59 2.10% -4.50% 0.00% 2012 1426.19
32.67 16.00% 5.80% 0.10% 2013 1848.36 39.75 32.40% 44.30% 0.00%...
The risk-free rate of return is 3 percent and the market risk premium is 10 percent. What is the expected rate of return on a stock with a beta of 1.2? Multiple Choice o 12.00% o 6.80% o 750% o 13.60% o 15.00%
Refer the table below on the average risk premium of the S&P 500 over T-bills and the standard deviation of that risk premium. Suppose that the S&P 500 is your risky portfolio. Period 1926-2015 1992–2015 1970–1991 1948-1969 1926-1947 Average Annual Returns S&P 500 1-Month Portfolio T-Bills 11.77 3.47 10.79 2.66 12.87 7.54 14.14 2.70 9.25 0.91 S&P 500 Portfolio Risk Standard Premium Deviation 8.30 20.59 8.13 18.29 5.33 18.20 11.44 17.67 8.33 27.99 Sharpe Ratio 0.40 0.44 0.29 0.65 0.30...
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