ZuoTi.Pro
Question

The rate of return on the 4 week treasury is .25%, the rate of return on a 9 week treasury is .75%, and the rate of return on
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer:

in practise however the risk free rate does not exist because even the rate safest investments carry small amount of risk. Thus the interest rate on three-month US treasury bill often used as the risk free rate for US based investors (or) 13 weeks.

Risk free Rate (13 weeks) = 1

0 0
Add a comment
Know the answer?
Add Answer to:
The rate of return on the 4 week treasury is .25%, the rate of return on...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Question 5 1 pts The rate of return on the 4 week treasury is .5%, the...

    Question 5 1 pts The rate of return on the 4 week treasury is .5%, the rate of return on a 9 week treasury is 75%, and the rate of return on a 13 week treasury is 1.25%. What is the risk free rate? Answer with a number and not a percent sign. For example if you think the answer is 2%, enter 2

  • 1.) The rate of return on the 4 week treasury is .25%, the rate of return...

    1.) The rate of return on the 4 week treasury is .25%, the rate of return on a 9 week treasury is .75%, and the rate of return on a 13 week treasury is 1%. What is the risk free rate? 2.) The rate of return on the 4 week treasury is .5%, the rate of return on a 9 week treasury is .75%, and the rate of return on a 13 week treasury is 1.25%. What is the risk...

  • The Treasury bill rate is 4%, and the expected return on the market portfolio is 11%....

    The Treasury bill rate is 4%, and the expected return on the market portfolio is 11%. According to the capital asset pricing model: a. What is the risk premium on the market? b. What is the required return on an investment with a beta of 1.6? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) c. If an investment with a beta of 0.8 offers an expected return of 8.6%, does it have...

  • Suppose that the Treasury bill rate is 4% and the expected return on the market stays...

    Suppose that the Treasury bill rate is 4% and the expected return on the market stays at 9%. Use the following information. Stock Beta (β) Caterpillar 1.68 Dow Chemical 1.63 Ford 1.42 Microsoft 0.96 Apple 0.93 Johnson & Johnson 0.55 Walmart 0.47 Campbell Soup 0.37 Consolidated Edison 0.19 Newmont 0.00 a. Calculate the expected return from Johnson & Johnson. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected return             % b. Find...

  • The Treasury bill rate is 4%, and the expected return on the market portfolio is 11%....

    The Treasury bill rate is 4%, and the expected return on the market portfolio is 11%. According to the capital asset pricing model: a. What is the risk premium on the market? b. What is the required return on an investment with a beta of 1.6? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) c. If an investment with a beta of 0.8 offers an expected return of 8.6%, does it have...

  • The Treasury bill rate is 4%, and the expected return on the market portfolio is 14%....

    The Treasury bill rate is 4%, and the expected return on the market portfolio is 14%. According to the capital asset pricing model: a. What is the risk premium on the market? b. What is the required return on an investment with a beta of 1.4? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) c. If an investment with a beta of 0.7 offers an expected return of 9.0%, does it have...

  • Suppose the risk free rate is 4.8% and the expected rate of return to the market...

    Suppose the risk free rate is 4.8% and the expected rate of return to the market is 10%. If the stock xyz's beta is 0.7, what is the expected rate of return to the stock? Answer to the nearest hundredth of a percent as in xx.xx% and enter without the percent sign.

  • U SEPUU.LUITI The risk-free rate is 4.69% and the expected return on the market 11.63%. A...

    U SEPUU.LUITI The risk-free rate is 4.69% and the expected return on the market 11.63%. A stock with a ß of 1.35 will have an expected return of __%. Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) unanswered not_submitted Attempts Remaining: Infinity A stock has an expected return of 18.00%. The risk-free rate is 1.91% and the market risk premium is 9.37%. What...

  • The risk free rate on Treasury bill is 2%. The annual rate of return onn the...

    The risk free rate on Treasury bill is 2%. The annual rate of return onn the DowJones market index is 7%. You are considering a stock with a beta that is 30% more volatile than the overall market beta. What is the minimum level of annual return that you would require on this investment? Choose one of the following A) 5.5% B) 2% C) 8.5% D) 6.5% E) 5%

  • Item4 1points Return to question Item 4 Item 4 1 points Treasury bills are currently paying...

    Item4 1points Return to question Item 4 Item 4 1 points Treasury bills are currently paying 8 percent and the inflation rate is 3 percent. a. What is the approximate real rate of interest? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the exact real rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT