Given,
T-bill return = 7.12%
Market risk premium = 1.94%
Solution :-
Return on the market = Market risk premium + T-bill return
= 1.94% + 7.12% = 9.06%
Question 13 1 pts The return on a Government of Canada T-Bill is 7.12%. Given a...
The return on a Government of Canada T-Bill is 2.43%. Given a market risk premium of 2.35%. What is the return on the market? (answer as a percentage)
The return on a Government of Canada T-Bill is 9.87%. Given a market risk premium of 5.12%. What is the return on the market? (answer as a percentage)
Problem 7.12 Assume the expected return on the market is 13 percent and the risk-free rate is 4 percent. What is the expected return for a stock with a beta equal to 0.50? (Enter your answers in decimals. Do not enter percent values.) Expected return What is the market risk premium? (Enter your answers in decimals. Do not enter percent values.) Market risk premium
What is 9. Here are stock market and Treasury bill percentage returns between 2006 and 2010: T-Bill Return Year 2006 2007 2008 2009 2010 Stock Market Return 15.770 5.610 -37.230 28.300 17.160 4.800 4.660 1.600 0.100 0.120 a. What was the risk premium on common stock in each year? b. What was the average risk premium? c. What was the standard deviation of the risk premium? d. What is the coefficient of variation?
Question 7 5 pts Given the following information, calculate Eagle Fund's alpha: T-Bill Return: 5% S&P 500 Return: 12% Beta: 0.85 Beginning Fund Value: $100 Ending Fund Value: $135 20.75% 8.40% 16.00% 24.05% 12.35%
3. (8 pts.) Today, the one-year T-bill rate is 4% in Canada and 6% in the US. The (expected) inflation rate for the next one year (Year 2019) is 2% in Canada. a) (4 pts.) Estimate the (expected) inflation rate next year in the US (Year 2019). b) (4 pts.) Estimate the one-year forward rate to be determined today (Fly, CSIS).
Question 12 1 pts Assume a risk-free rate of 2.59% and an expected return of the market of 8.62%. Assume further that we have an asset with a beta of 2.62. According the CAPM, what should the expected return of this asset be? (give the answer as a percentage)
The market has an expected rate of return of 9.8 percent. The long-term government bond is expected to yield 4.5 percent and the U.S. Treasury bill is expected to yield 3.4 percent. The inflation rate is 3.1 percent. What is the market risk premium?
The market has an expected rate of return of 11.2 percent. The long-term government bond is expected to yield 5.8 percent and the U.S. Treasury bill is expected to yield 3.9 percent. The inflation rate is 3.6 percent. What is the market risk premium?
Answer Question 8 (1 point) Milo Corporation has a Beta of 0.3. The U.S. government T-Bill is expected to yield! 0.04, and the S&P 500 is expected to yield 0.10 in the near future. What is Milo's required rate of return? Your Answer: Answer Ruestion 9 (1 point) Saved Which of the following statementaraba? More than one anmer can be