The Real rate of return which is the annualized rate of return on an investment plus...
The Real rate of return which is the annualized rate of return on an investment plus the rate of inflation. My question is whether the Real rate of return also takes into account the effect of taxation ?
Homework Answers
No real rate of return is before tax rate
After tax real rate of return = (1+nominal rate*(1-tax rate))/(1+inflation rate)-1
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The Real rate of return which is the
annualized rate of return on an investment plus...
Interest rate fundamentals: The real rate of return Carl Foster, a trainee at an investment banking...
Interest rate fundamentals: The real rate of return Carl Foster, a trainee at an investment banking firm, is trying to get an idea of what real rate of return investors are expecting in today's marketplace. He has looked up the rate paid on 3-month U.S. Treasury bills and found it to be 1.5%. He has decided to use the recent rate of change in the Consumer Price Index as a proxy for the inflationary expectations of investors. That annualized rate...
An investment had a nominal return of 10.6percent last year. If the real return on investment...
An investment had a nominal return of 10.6percent last year. If the real return on investment was only 6.3 percent, what was the inflation rate for the year? a. 17.57% b. 3.89% c. 10.73% d. 4.49%
What are the annualized discount rate and your annualized investment rate on a Treasury bill that...
What are the annualized discount rate and your annualized investment rate on a Treasury bill that you purchase for $9,940 that will mature in 91 days for $10,000? 1.
An investment had a nominal return of 10.3 percent last year. If the real return on...
An investment had a nominal return of 10.3 percent last year. If the real return on the investment was only 5.7 percent, what was the inflation rate for the year?
An investment had a nominal return of 10.4 percent last year. If the real return on...
An investment had a nominal return of 10.4 percent last year. If the real return on the investment was only 5.9 percent, What was the inflation rate for the year?
Also calculate the holding period return (HPR) and calculate the annualized rate or return if the...
Also calculate the holding period return (HPR)
and calculate the annualized rate or return if the investment
was held for 290 days
QUESTIONS 1 points Save Answer For this and the next 3 questions. Colin Starting bought 50.000 shares of Zord stock for $0 porshe Three months 91 day at the sets 20,000 shares of his stock for $85 per share. There were no dividend payments during the holding period. What is the total value of his investment AT THE...
which 1 of these is usually not considered a determinant of expected real rate of return on investment:
which 1 of these is usually not considered a determinant of expected real rate of return on investment:
An investment had a nominal return of 11.2 percent last year. If the real return on...
An investment had a nominal return of 11.2 percent last year. If the real return on the investment was only 7.5 percent, what was the inflation rate for the year? Multiple Choice 3.82% 11.43% 3.33% 19.54% 3.44%
If I have a 10 year investment with a 5% rate of return and a $1000...
If I have a 10 year investment with a 5% rate of return and a $1000 initial investment, what will happen if my inflation rate is bigger than my rate of return? . I will have less money than I invested after controlling for inflation B. I will have more money than I invested after controlling for inflation C. It depends on the tax rate D. It depends on my annual investment
Calculate the inflation-adjusted interest rate when the annualized inflation rate is 77% per year and the...
Calculate the inflation-adjusted interest rate when the annualized inflation rate is 77% per year and the real interest rate is 3.5% per year. The inflation-adjusted interest rate is %
Interest rate fundamentals: The real rate of return Carl Foster, a trainee at an investment banking firm, is trying to get an idea of what real rate of return investors are expecting in today's marketplace. He has looked up the rate paid on 3-month U.S. Treasury bills and found it to be 1.5%. He has decided to use the recent rate of change in the Consumer Price Index as a proxy for the inflationary expectations of investors. That annualized rate...
What are the annualized discount rate and your annualized investment rate on a Treasury bill that you purchase for $9,940 that will mature in 91 days for $10,000? 1.
Also calculate the holding period return (HPR)
and calculate the annualized rate or return if the investment
was held for 290 days
QUESTIONS 1 points Save Answer For this and the next 3 questions. Colin Starting bought 50.000 shares of Zord stock for $0 porshe Three months 91 day at the sets 20,000 shares of his stock for $85 per share. There were no dividend payments during the holding period. What is the total value of his investment AT THE...
Calculate the inflation-adjusted interest rate when the annualized inflation rate is 77% per year and the real interest rate is 3.5% per year. The inflation-adjusted interest rate is %
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