Can you please help me figure out how the answer is B using a formula.
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Can you please help me figure out how the answer is B using a
formula.
14....
14. Over the last 5 years, the average nominal rate of return of 90 day Treasury...
14. Over the last 5 years, the average nominal rate of return of 90 day Treasury bills was 1.02%, Saltine Co.'s average nominal stock return was 8.9%, large company stocks average nominal return was 15%, and the inflation rate averaged 2.7%. The real rate of Saltine's stock return is A) 6.8%. B) 6.0%. C) 5.1%. D) 4.3%.
11. A zero coupon bond is selling for $476. The bond has a face value of...
11. A zero coupon bond is selling for $476. The bond has a face value of $1,000 and matures in 8 years. Your friend asks you if he should buy the bond. He tells you his required return is 9 percent. Would you recommend he buy the bond or not? Explain your answer. 12. Assume that you have $330.000 invested in a stock that is retuming 11.50%, $170,000 invested in a stock that is returning 22.75%, and $470,000 invested in...
Problem 10-5 Nominal versus Real Returns [LO 2] Consider the following information on different asset classes...
Problem 10-5 Nominal versus Real Returns [LO 2] Consider the following information on different asset classes from 1926 through 2011. Arithmetic Mean 11.8% 16.5 6.4 Series Large-company stocks Small-company stocks Long-term corporate bonds Long-term government bonds Intermediate-term government bonds U.S. Treasury bills Inflation 6.1 5.5 3.6 3.1 Required: (a) What was the arithmetic average annual return on large-company stocks in nominal terms? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)...
Note the return series below and answer the following questions 1. What is the average nominal...
Note the return series below and answer the following
questions
1. What is the average nominal return earned on large company
stocks? (Enter percentages as decimals and round to 4 decimal
places)
2. What is the average real return earned on large company stocks?
(Enter percentages as decimals and round to 4 decimal places)
3. What is the average risk premium earned on large company
stocks? (Enter percentages as decimals and round to 4 decimal
places)
4. What is the...
Please help me understand how the answer to this question is B using formulas or a...
Please help me understand how the answer to this question is B
using formulas or a financial calculator if applicable.
12. Assume that you have $330,000 invested in a stock that is returning 11.50%, $170,000 invested in a stock that is returning 22.75%, and $470,000 invested in a stock that is returning 10.25%. The risk free rate is 2.1% and inflation is 5%. What is the expected return of your portfolio? A) 15.6%. B) 12.9% C) 18.3%. D) 14.8% Answer:...
all one problem please help with all FIGURE 10. 4 A $1 investment in different types...
all one problem please help with all
FIGURE 10. 4 A $1 investment in different types of portfolios 1925-2014 [year-end 1925 = 51) $100.000 $27419 32 $10.000 $5,316 86 Smat company los $.000 Large company $135 18 5100 500 5 $13.10 government to Infat Treasury tells 1925 1930 1939 1940 1949 1950 1959 1960 1969 1970 1975 1980 1985 1990 1995 2000 2005 2010 Year-end Bon art, and not abood Morningstar Ine. Chikapo mwly updates work by Hogor B o...
Please help me understand how to come to the answer above using formulas or a financial...
Please help me understand how to come to the answer above using
formulas or a financial calculator if possible. Thanks.
6. Answer the questions below using the following information on stocks A, B, and C. Expected Return Standard Deviation Beta A 20% 12% 1.8 21% 10% 2.2 10% 10% 0.8 Assume the risk-free rate of return is 3% and the expected market return is 12%. If returns are normally distributed, then approximately two-thirds of the time the return on each...
Can you show me how to figure out A using the formula BY HAND? (not with...
Can you show me how to figure out A using the formula BY HAND?
(not with excel)
The research division of a large chemical company tried each of three termite repellants on 200 wooden stakes driven into ran- dom locations. Two years later, the number of infected stakes 17-8 was as follows: Ci- Treatment ΠΆ, T2 T1 Infected? 48 18 26 Yes No 29 174 152 182 co Note that this experiment was designed to have exactly the same number...
can anyone help me to solve these q?please!! : Question 12 Discuss if the following statement...
can anyone help me to solve these q?please!!
: Question 12 Discuss if the following statement is true or false: From an investor's perspective, investing in stocks is risker than investing in bonds. Question 13 If your nominal rate of return is 12.62 percent and inflation rate over the period is 4.8 percent, what is the actual real rate of return? Question 14 As an investor, why should we be concerned about inflation? Question 15 Blue House Incorporated just paid...
in the second pic, can please help me figure out how the profile return percentage of...
in the second pic, can please help me figure out how
the profile return percentage of the standard deviation is 3.9??
like how and why is it 3.9???
Risk and DIY Diversification 13 of 9). Two Asset Example: Gold imple: Gold and Auto stocks Probability Rate of Retur Auto Stock Gold Stock Scenario Recension Normal Boom 20 1/3 Deviation from Rate o Return Sound Dovlation 20 Scenario Recession Normal Boom Expected return +18 +13 -B+B + 16) - 58 Variance...
14. Over the last 5 years, the average nominal rate of return of 90 day Treasury bills was 1.02%, Saltine Co.'s average nominal stock return was 8.9%, large company stocks average nominal return was 15%, and the inflation rate averaged 2.7%. The real rate of Saltine's stock return is A) 6.8%. B) 6.0%. C) 5.1%. D) 4.3%.
11. A zero coupon bond is selling for $476. The bond has a face value of $1,000 and matures in 8 years. Your friend asks you if he should buy the bond. He tells you his required return is 9 percent. Would you recommend he buy the bond or not? Explain your answer. 12. Assume that you have $330.000 invested in a stock that is retuming 11.50%, $170,000 invested in a stock that is returning 22.75%, and $470,000 invested in...
Problem 10-5 Nominal versus Real Returns [LO 2] Consider the following information on different asset classes from 1926 through 2011. Arithmetic Mean 11.8% 16.5 6.4 Series Large-company stocks Small-company stocks Long-term corporate bonds Long-term government bonds Intermediate-term government bonds U.S. Treasury bills Inflation 6.1 5.5 3.6 3.1 Required: (a) What was the arithmetic average annual return on large-company stocks in nominal terms? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)...
Note the return series below and answer the following
questions
1. What is the average nominal return earned on large company
stocks? (Enter percentages as decimals and round to 4 decimal
places)
2. What is the average real return earned on large company stocks?
(Enter percentages as decimals and round to 4 decimal places)
3. What is the average risk premium earned on large company
stocks? (Enter percentages as decimals and round to 4 decimal
places)
4. What is the...
Please help me understand how the answer to this question is B
using formulas or a financial calculator if applicable.
12. Assume that you have $330,000 invested in a stock that is returning 11.50%, $170,000 invested in a stock that is returning 22.75%, and $470,000 invested in a stock that is returning 10.25%. The risk free rate is 2.1% and inflation is 5%. What is the expected return of your portfolio? A) 15.6%. B) 12.9% C) 18.3%. D) 14.8% Answer:...
all one problem please help with all
FIGURE 10. 4 A $1 investment in different types of portfolios 1925-2014 [year-end 1925 = 51) $100.000 $27419 32 $10.000 $5,316 86 Smat company los $.000 Large company $135 18 5100 500 5 $13.10 government to Infat Treasury tells 1925 1930 1939 1940 1949 1950 1959 1960 1969 1970 1975 1980 1985 1990 1995 2000 2005 2010 Year-end Bon art, and not abood Morningstar Ine. Chikapo mwly updates work by Hogor B o...
Please help me understand how to come to the answer above using
formulas or a financial calculator if possible. Thanks.
6. Answer the questions below using the following information on stocks A, B, and C. Expected Return Standard Deviation Beta A 20% 12% 1.8 21% 10% 2.2 10% 10% 0.8 Assume the risk-free rate of return is 3% and the expected market return is 12%. If returns are normally distributed, then approximately two-thirds of the time the return on each...
Can you show me how to figure out A using the formula BY HAND?
(not with excel)
The research division of a large chemical company tried each of three termite repellants on 200 wooden stakes driven into ran- dom locations. Two years later, the number of infected stakes 17-8 was as follows: Ci- Treatment ΠΆ, T2 T1 Infected? 48 18 26 Yes No 29 174 152 182 co Note that this experiment was designed to have exactly the same number...
can anyone help me to solve these q?please!!
: Question 12 Discuss if the following statement is true or false: From an investor's perspective, investing in stocks is risker than investing in bonds. Question 13 If your nominal rate of return is 12.62 percent and inflation rate over the period is 4.8 percent, what is the actual real rate of return? Question 14 As an investor, why should we be concerned about inflation? Question 15 Blue House Incorporated just paid...
in the second pic, can please help me figure out how
the profile return percentage of the standard deviation is 3.9??
like how and why is it 3.9???
Risk and DIY Diversification 13 of 9). Two Asset Example: Gold imple: Gold and Auto stocks Probability Rate of Retur Auto Stock Gold Stock Scenario Recension Normal Boom 20 1/3 Deviation from Rate o Return Sound Dovlation 20 Scenario Recession Normal Boom Expected return +18 +13 -B+B + 16) - 58 Variance...
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