The Costaguanan stock market provided a rate of return of 97%. The inflation rate in Costaguana...
The Costaguanan stock market provided a rate of return of 97%. The inflation rate in Costaguana during the year was 83%. In Ruritania, in contrast, the stock market return was only 12%, but the inflation rate was only 2%.
a. Calculate the real rate of return for both the Costaguana and the Ruritania stock markets. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Homework Answers
the real rate of return for both the Costaguana stock market
=((1+97%)/(1+83%))-1
=7.65%
the real rate of return for both the Ruritania stock market
=((1+12%)/(1+2%))-1
=9.80%
the above is answer..
Add Answer to:
The Costaguanan stock market provided a rate of return of 97%.
The inflation rate in Costaguana...
The Costaguanan stock market provided a rate of return of 96%. The inflation rate in Costaguana...
The Costaguanan stock market provided a rate of return of 96%. The inflation rate in Costaguana during the year was 80%. In the United States, in contrast, the stock market return was only 16%, but the inflation rate was only 2%. Calculate the real rate of return for both the Costaguana and the United States stock markets. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Real rate of return Costaguana United States...
The Costaguanan stock market provided a rate of return of 98%. The inflation rate in Costaguana...
The Costaguanan stock market provided a rate of return of 98%. The inflation rate in Costaguana during the year was 86%. In the Ruritania, in contrast, the stock market return was only 15%, but the inflation rate was only 3%. Calculate the real rate of return for both the Costaguana and the Ruritania stock markets. a) Rate of Return Costaguana Ruritania b) Which country’s stock market provided the higher real rate of return?
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 %...
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 information about three stocks: Rate of Return If State Occurs State of...
Consider the following information about three stocks: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .20 .28 .40 .56 Normal .45 .22 .20 .18 Bust .35 .00 −.20 −.48 a-1 If 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...
Consider the following information about three stocks: Rate of Return If State Occurs State of Probability...
Consider the following information about three stocks: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .20 .28 .40 .56 Normal .45 .22 .20 .18 Bust .35 .00 −.20 −.48 a-1 If 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...
Consider the following information about three stocks: Rate of Return If State Occurs State of Probability of Economy Economy Boom Normal Bust State of Stock B 56 .14 -.46 25 45 .30 25 .22 .30 .30 c-...
Consider the following information about three stocks: Rate of Return If State Occurs State of Probability of Economy Economy Boom Normal Bust State of Stock B 56 .14 -.46 25 45 .30 25 .22 .30 .30 c-1. If the expected inflation rate is 4.30 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. What are the...
Consider the following information about three stocks: Rate of Return If State Occurs State of Probability...
Consider the following information about three stocks: Rate of Return If State Occurs State of Probability of State of Economy Economy Stock A .32 Stock C .56 Boom Normal Bust Stock B .44 11 -25 26 .50 24 .09 .04 -.45 a-3 a-1. If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio expected return? (Do not round intermediate calculations and enter your answer as a percent rounded to...
A stock has a beta of 1.22the expected return on the market is 12 percent, and...
A stock has a beta of 1.22the expected return on the market is 12 percent, and the risk- free rate is 4.65 percent. What must the expected return on this stock be? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %
The following table shows the nominal returns on US. stocks and the rate of inflation, ㄧ...
The following table shows the nominal returns on US. stocks and the rate of inflation, ㄧ Year Nominal Return (%) Inflation (%) 12.0 7.8 172 7.7 -43.5 2.4 3.2 4.0 4.3 .2 2010 2011 2014 a. What was the standard deviation of the nominal market returns? (Do not make the adjustment for degrees of freedom described in footnote 18) (Use decimals, not percents, in your caleulations. Do not round intermediate calculations. Enter your answer as a percent rounded to 2...
The Costaguanan stock market provided a rate of return of 96%. The inflation rate in Costaguana during the year was 80%. In the United States, in contrast, the stock market return was only 16%, but the inflation rate was only 2%. Calculate the real rate of return for both the Costaguana and the United States stock markets. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Real rate of return Costaguana United States...
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 %...
Consider the following information about three stocks: Rate of Return If State Occurs State of Probability of Economy Economy Boom Normal Bust State of Stock B 56 .14 -.46 25 45 .30 25 .22 .30 .30 c-1. If the expected inflation rate is 4.30 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. What are the...
Consider the following information about three stocks: Rate of Return If State Occurs State of Probability of State of Economy Economy Stock A .32 Stock C .56 Boom Normal Bust Stock B .44 11 -25 26 .50 24 .09 .04 -.45 a-3 a-1. If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio expected return? (Do not round intermediate calculations and enter your answer as a percent rounded to...
A stock has a beta of 1.22the expected return on the market is 12 percent, and the risk- free rate is 4.65 percent. What must the expected return on this stock be? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %
The following table shows the nominal returns on US. stocks and the rate of inflation, ㄧ Year Nominal Return (%) Inflation (%) 12.0 7.8 172 7.7 -43.5 2.4 3.2 4.0 4.3 .2 2010 2011 2014 a. What was the standard deviation of the nominal market returns? (Do not make the adjustment for degrees of freedom described in footnote 18) (Use decimals, not percents, in your caleulations. Do not round intermediate calculations. Enter your answer as a percent rounded to 2...
Most questions answered within 3 hours.
-
Calculate the number of valence electrons for
[Mo(C6H6)(CO)3]
asked 10 minutes ago -
Which of the following are true about the strength of the
association between two variables?
1-...
asked 6 minutes ago -
You are a monopolist and know that your consumers have a linear
demand curve. At what...
asked 5 minutes ago -
Raising a heavy load requires work. Raising it in half the time
requires:
asked 12 minutes ago -
MGT-201: Marketing Management
Before deciding on the structure of the channel marketers must
take several factors...
asked 12 minutes ago -
1. ACLs allow a router to control traffic within a network. The
concept is very similar...
asked 13 minutes ago -
35. When the electron in a hydrogen atom falls from its first
excited energy level to...
asked 15 minutes ago -
A man is dragging a box of mass "m" by using a rope which rests
on...
asked 31 minutes ago -
Liquid octane
(CH3(CH2)6CH3) will
react with gaseous oxygen (O2) to produce gaseous carbon
dioxide (CO2) and...
asked 32 minutes ago -
For the reaction N2(g) +
O2(g) --> 2NO(g), if the initial
concentration of NO was 0.00M...
asked 35 minutes ago -
On a recent quiz, the class mean was 75 with a standard
deviation of 2.2. Calculate...
asked 52 minutes ago -
Discuss the Coefficient of Restitution in an elastic collision
compared to the Coefficient of Restitution in...
asked 56 minutes ago